EBay rejected GameStop’s unsolicited acquisition bid, describing the proposal as “neither credible nor attractive” in a letter to Ryan Cohen on Tuesday. Cohen — the CEO of GameStop — had submitted a non-binding acquisition proposal earlier this month for about $56 billion, a transaction that would consist of half cash and half stock.
“eBay is a strong, resilient business that has delivered meaningful results over the past several years,” Paul Pressler, chairman of eBay’s board of directors, said in the letter. “We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders. 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 abrupt and bullish proposal garnered more attention as Cohen was interviewed about the move by several outlets. He also posted to his X account about selling GameStop memorabilia and other merchandise from his own eBay account "to pay for eBay".
Hosts on CNBC’s “Squawk Box” show attempted to better understand the specifics of Cohen’s bid in an interview where the chief executive instead kept referring them to GameStop’s website for more details. GlobalData Managing Director Neil Saunders described the financing in the proposal as a “monetary black hole” in emailed comments.
