eBay rejects GameStop’s $56B takeover offer

eBay rejected GameStop’s $56 billion takeover offer, calling the half-cash, half-stock proposal ‘neither credible nor attractive.’ The board noted it had reviewed the approach and would not pursue the deal.

GameStop made the offer last week, proposing to buy eBay with a mix of cash and GameStop shares. eBay’s board wrote that it had “concluded that [GameStop’s] proposal is neither credible nor attractive.”

Paul Pressler, eBay’s chairman, wrote the board is confident the company, “under its current management team, is well-positioned to continue to drive sustainable growth.”

The bid represented a large jump for GameStop. The retailer’s market capitalization is about $12 billion, while eBay’s market value is roughly four times that amount. Market participants questioned whether a deal structured half in cash and half in stock could close given the gap in size.

eBay will continue to operate independently under its existing leadership. GameStop has not submitted a revised proposal or indicated plans to pursue a hostile bid.

eBay runs a global online marketplace that connects buyers and sellers across a wide range of goods and services. GameStop operates a retail chain selling video games, consoles and collectibles.