EBay said Tuesday that it had rejected an unsolicited $56 billion takeover offer from video game retailer GameStop, dashing the company’s ambition to become an e-commerce rival to Amazon.
The bid, disclosed earlier this month by GameStop Chairman Ryan Cohen, valued eBay at $125 per share in cash and stock for a total equity value of about $55 billion. Cohen’s proposal aimed to use GameStop’s roughly 1,600 U.S. stores as drop-off and shipping hubs for eBay purchases, with live sales broadcasts from GameStop locations featuring eBay products.
In a letter to Cohen, eBay Chairman Paul Pressler wrote that the board had completed its review of the offer and found it “neither credible or attractive.” Pressler described eBay as a “strong, resilient business” with a “differentiated global marketplace” and expressed confidence in the company’s ability to “continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.”
EBay’s board, which includes Pressler, also said that the company is “well-positioned” under its current management team.
GameStop did not respond to a request for comment Tuesday. The company’s shares fell 4% in premarket trading, while eBay shares were little changed.