eBay Rejects GameStop's $55.5 Billion Takeover Bid as 'Not Credible'

Global online marketplace eBay has formally rejected GameStop’s unsolicited $55.5 billion half-stock, half-cash acquisition proposal. The board of directors concluded the offer was insufficient after a thorough review.

Board Chairman Paul Pressler wrote in a letter to GameStop CEO Ryan Cohen: 'We have concluded that your proposal is neither credible nor attractive.' Pressler cited eBay’s strength as an independent firm and uncertainty regarding the financing and risks of a combined entity.

Earlier this month, Cohen told the Wall Street Journal that eBay should be worth 'hundreds of billions of dollars.' However, eBay’s board expressed confidence in its current strategy and management team to deliver sustainable growth and shareholder value.

GameStop owns about 5% of eBay shares. Shares of EBAY are up nearly 24% year-to-date and over 55% in the last year, trading around $107.71. GameStop shares, trading around $22.99, have fallen more than 18% over the same period.

Notably, 'Big Short' investor Michael Burry offloaded his GameStop shares last week, citing proposed debt levels that violated his investment thesis. GameStop purchased 4,710 BTC for over $500 million last year, now worth nearly $380 million.