Online marketplace eBay on Tuesday rejected a proposal by GameStop to combine with the company in a cash and stock deal valued at about $55 billion, calling it “neither credible nor attractive.”
GameStop last week announced its proposal to combine with eBay, a company nearly four times its size. The offer has confused much of Wall Street in part over questions about how the company would afford it.
EBay said on Tuesday that it had conducted a thorough review of the offer with its legal and financial advisers. In a letter to GameStop published Tuesday, eBay Chairman Paul Pressler cited several concerns with the bid, including uncertainty about how it would be financed and the amount of debt the deal would add to the company.
Mr. Pressler also highlighted eBay’s improved performance as it has managed a turnaround to better compete with giants such as Amazon.
“We have sharpened our strategic focus, strengthened execution, improved our marketplace and seller experience, and consistently returned capital to shareholders,” wrote Mr. Presser.
This is a development story. Check back for updates.
