EBay formally rejected a $55 billion takeover proposal from GameStop on Tuesday, with chairman Paul Pressler calling the bid ‘neither credible nor attractive’ in a letter made public the same day.
Pressler cited two core problems with the offer: significant uncertainty around how GameStop would finance the deal, and the volume of debt the transaction would load onto the combined company.
The rejection lands after GameStop’s proposal last week left much of Wall Street puzzled, with analysts questioning how the video game retailer could realistically afford to acquire an online marketplace nearly four times its size.
In his letter, Pressler also pointed to eBay’s recent operational progress, writing that the company has ‘sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders.’
This is a developing story.
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