eBay rejects $55.5bn offer from GameStop

Online marketplace eBay has rejected a $55.5bn (£40.9bn) takeover offer from video game retailer GameStop, calling it "unsolicited" and "neither credible nor attractive".Analysts had expected the offer to be rejected as GameStop is much smaller than eBay, which said there was "uncertainty" over how the deal would be financed.Although eBay has suffered in recent years, partly due to more competition from online sellers like Amazon, Etsy and Temu, it insisted its turnaround plan was working.GameStop rose to prominence as a "meme stock", which sees retail investors buy up shares in unloved companies that professional investors have bet against, causing the share price to rise and fall sharply.In a letter to GameStop chief executive Ryan Cohen rejecting the surprise offer, eBay's Board of Directors said the online auction giant was a "strong, resilient business". It cited as a reason for rejection "the impact of your proposal on eBay's long-term growth and profitability", adding it had also considered the offer's "operational risks, and leadership structure of a combined entity".It also cited "GameStop's governance" in the list of factors it had determined before rejecting last week's bid.But it wouldn't be the end of the line for GameStop if it chooses to take its proposal directly to eBay shareholders - which Cohen said last week he would do if faced with a "no" from the board.