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EBay on Tuesday rejected an ambitious $56 billion takeover bid from the much smaller GameStop on ​doubts over the financing of the deal, ‌while underscoring its turnaround efforts that have boosted its growth.

The rejection could lead to a hostile bid as GameStop (GME.N) ​CEO Ryan Cohen had last week said ​he was willing to take the offer directly ⁠to eBay (EBAY.O) shareholders.

Analysts and investors have doubted whether ​the half-cash, half-stock bid from the $12 billion videogame ​retailer for a company nearly four times its market value would close. EBay stock has been trading $20 below the offer ​price of $125 per share.

The approach has also irked ​some GameStop investors. Following the bid, Michael Burry of the "The ‌Big ⁠Short" fame sold all his shares in the company.

Calling the deal strategy "pedestrian", Burry, who once likened GameStop CEO Ryan Cohen to Warren Buffett, warned about ​the debt ​load and ⁠shareholder dilution.

Cohen is betting on replicating his cost-cutting playbook at GameStop to boost ​eBay's profitability, while tapping GameStop's around 1,600 ​U.S. ⁠stores into a physical network to make eBay a better competitor to Amazon (AMZN.O).

He has also touted $20 billion ⁠in ​potential debt financing from TD ​Securities and GameStop's ability to issue stock to fund the deal.