‘Neither credible or attractive’: eBay slaps down GameStop’s $56 billion takeover bid

Online seller e Bay is rejecting an unsolicited $56 billion takeover offer from Game Stop, calling the proposal “neither credible or attractive.” Ryan Cohen’s Game Stop disclosed earlier this month that it was pursuing a takeover of e Bay, seeing it as a vehicle to compete with online retail giant Amazon. The national gaming retailer said at the time that its approximately 1,600 U.S. stores could become drop-off and shipping locations. One proposal included live sales broadcasts from Game Stop locations featuring eBay products. GameStop’s bid is worth $125 per share in cash and stock. The equity value of the proposed deal is $55 billion on paper. The company previously said that it started accumulating shares in eBay beginning in February and currently has a 5% stake. In a letter from eBay Chairman Paul Pressler sent to Cohen, eBay’s board said that it had completed its review of GameStop’s offer and believes that eBay is 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. GameStop did not immediately respond to a request for comment. The company’s stock fell 4% before the market open on Tuesday. This story was originally featured on Fortune.com