EBay has rejected GameStop’s unsolicited, non-binding acquisition proposal, saying it is “neither credible nor attractive.”
The rejection follows what eBay called a thorough review of the GameStop buyout proposal, with support from its financial and legal advisors.
Over the signature of Paul Pressler, eBay board chairman, eBay addressed Ryan Cohen, Gamestop chairman and CEO, writing:
We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) eBay’s standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay’s long-term growth and profitability, 4) the leverage, operational risks and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop’s governance and executive incentives.
eBay is a strong, resilient business that has delivered meaningful results over the past several years. 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.
Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and millions of buyers and sellers around the world.
Earlier this month, GameStop Corp. proposed acquiring all of eBay’s common stock at $125 per share. The proposal came after GameStop accumulated a 5% economic stake in the e-tailer through derivatives and common stock ownership.
In the first quarter, the most recent completed, eBay topped analyst estimates, including on revenue, which reached $3.09 billion, up from $2.59 billion in the year-prior period.
