eBay rejects $56bn takeover offer from GameStop

Online seller eBay has rejected an unsolicited $56 billion takeover offer from GameStop, calling the proposal “neither credible nor attractive”.

Ryan Cohen’s GameStop announced earlier this month that it was pursuing a takeover of eBay, seeing it as a way to compete with online retail giant Amazon.

The national gaming retailer stated at the time that its approximately 1,600 US stores could serve as drop-off and shipping locations. 

According to ABC News, one proposal involved live sales broadcasts from GameStop locations featuring eBay products.

ABC News also reports that GameStop’s bid is worth $125 per share in cash and stock; the proposed deal’s equity value is $55 billion on paper. 

The company previously stated that it began accumulating eBay shares in February and currently holds a 5% stake.

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In a letter sent to Cohen by eBay Chairman Paul Pressler, the board stated that it had completed its review of GameStop’s offer and believed that eBay was a “strong, resilient business.”

“With its differentiated global marketplace and a clear strategy, eBay’s board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders,” the letter said.

ABC News further reports that GameStop did not immediately respond to a request for comment, citing that the company’s stock fell 4% before the market opened on Tuesday.

(ABC)