eBay Officially Rejects GameStop’s $56 Billion Takeover Bid Calling It "Neither Credible Nor Attractive"

Last week, GameStop surprised everyone after reportedly offering nearly $56 billion to acquire eBay. Ryan Cohen, CEO of GameStop reportedly pitched the deal as a way to combine collectibles, gaming, resale, and enthusiast commerce under one ecosystem. After Cohen’s claim of his account being banned from platform, today eBay has officially rejected GameStop’s takeover offer, calling the proposal inadequate and not credible enough to pursue further.

eBay says GameStop’s proposal is neither credible nor attractive

In an open letter to GameStop CEO, Ryan Cohen, eBay’s Chairman of the Board of Directors, Paul S. Pressler officially rejected the bid calling it an “unsolicited proposal.” As noted in the letter, eBay’s board of directors said it has “concluded that your proposal is neither credible nor attractive.” Here’s what’s mentioned in the open letter to GameStop CEO, Ryan Cohen:

“The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.

We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) eBay’s standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay’s long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop’s governance and executive incentives.

eBay is a strong, resilient business that has delivered meaningful results over the past several years. We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders. 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.

Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and millions of buyers and sellers around the world.”

Do you think a GameStop and eBay merger could have actually worked, or was the proposal too ambitious from the start?