EBay rejects GameStop’s $56bn bid as ‘neither credible nor attractive’

GameStop CEO Cohen, who has built a 5 percent position in EBay, has hinted he may take offer directly to EBay shareholders.EBay has rejected a $56bn takeover bid from the much smaller GameStop over financing doubts, calling the proposal “neither credible nor attractive”.EBay, which has roughly four times GameStop’s market value, also underscored on Tuesday that its turnaround efforts under CEO Jamie Iannone have boosted growth, with its stock returning 201 percent since Iannone took the position six years ago.Recommended Stories list of 4 itemslist 1 of 4Africa’s richest man plans new Mombasa oil refinery: Why this matterslist 2 of 4Why the hantavirus outbreak is different from COVID-19list 3 of 4‘Never give up’: Meet Curacao, the smallest country at a FIFA World Cuplist 4 of 4Pentagon gives new $29bn Iran war price tag, downplays munitions concernsend of list“We have concluded that your proposal is neither credible nor attractive,” EBay Chairman Paul Pressler said in a statement. “EBay’s Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth.”He also pointed to concerns with GameStop’s bid, including its financing, its effect on EBay’s long-term growth and the leadership structure of a potentially combined company.GameStop did not immediately respond to a request for comment.Last week, GameStop CEO Ryan Cohen surprised Wall Street with his bid, which included a $20bn debt financing commitment from TD Bank.Analysts and investors have doubted whether the half-cash, half-stock bid for EBay from the $12bn videogame retailer would close.EBay stock has been trading far below the offer price of $125 per share since the bid was made this month. It fell 1.3 percent on Tuesday to $106.68, while GameStop was down nearly 2 percent in early trading. In the last 12 months, EBay’s stock has climbed 56 percent while GameStop’s has dropped 18 percent.Cohen, who has built a 5 percent position in EBay, has signalled he may be ready to take the offer directly to EBay shareholders, possibly by calling a special meeting. That can be difficult as calling a meeting requires a bigger stake.