eBay Rejects GameStop’s $56B Bid to Buy the Company, Says It’s ‘Neither Credible Nor Attractive’

The multinational e-commerce corporation eBay has rejected the $56 billion bid that GameStop proposed, which would have required it to operate under the gaming retailer.

According to eBay, the offer from GameStop is not just unattractive to its board, but they also perceive the gaming retailer to not be credible to acquire a company of their size and scope.

eBay Rejects GameStop's $56B Bid

eBay's Chairman, Paul Pressler, wrote a letter addressed to GameStop's CEO Ryan Cohen, which offered a response to the gaming retailer's bid to buy the company for a total of $56 billion.

Here, Pressler said that after they deliberated the proposal sent by GameStop, he and the board "have concluded that your proposal is neither credible nor attractive."

According to eBay's response, they have taken into account multiple factors that helped them come to their decision.

The e-commerce platform said that they found an "uncertainty" regarding GameStop's financing proposal, as well as the risks and leadership structure that a combined entity would have under the acquisition.

Moreover, eBay also believes that the deal would have resulted in implications for their valuations as well as the company's governance and executive incentives.

GameStop's Plans to Acquire eBay

According to ArsTechnica's report, GameStop submitted its proposal to eBay last week, and Cohen said that if the e-commerce company rejects it, it "could lead to a hostile bid."

The GameStop CEO said that he will call for a special meeting, which will include shareholders, and take the offer directly to them.

It was previously detailed by Cohen via an awkward interview with CNBC how the company would pay for the bigger company, especially as eBay's market capitalization is over four times larger than GameStop's.

According to Cohen, GameStop is on track to secure as much as $20 billion in debt alongside its offer to buy eBay at $125 per share, which will be half in cash and half in GameStop stock. However, it was previously noted by CNBC that it still fails to make up the entire $55.5 billion.