eBay Inc. (NASDAQ:EBAY) rejected GameStop Corp.‘s (NYSE:GME) massive $56 billion buyout bid on Tuesday, dismissing the video game retailer’s aggressive takeover attempt as “neither credible nor attractive” in a decisive letter to CEO Ryan Cohen.
Following days of social media drama and market speculation, in a direct letter to Cohen, eBay Chairman Paul S. Pressler outlined the board’s thorough review with financial and legal advisors, ultimately determining the merger would not serve the e-commerce platform’s shareholders.
“The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it,” the letter read. “We have concluded that your proposal is neither credible nor attractive.”
The rejection cited multiple red flags regarding the feasibility of the massive buyout. The board specifically pointed to the “uncertainty regarding your financing proposal,” as well as the “leverage, operational risks, and leadership structure of a combined entity.”
GameStop did not immediately respond to Benzinga‘s request for comment.
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