The online marketplace eBay on Tuesday rejected a proposal by GameStop to combine with the company in a cash and stock deal worth about $55 billion, calling it “neither credible nor attractive.”
GameStop announced its proposal last week to combine with eBay, a company nearly four times its size. The offer has confounded much of Wall Street in part over questions about how the company would afford it.
eBay said Tuesday that it had led a thorough review of the offer with its legal and financial advisers. In a letter to GameStop made public Tuesday, eBay’s chairman, Paul Pressler, listed a number of concerns with the bid, including the uncertainty about how it would be financed, as well as the amount of debt the deal would add to the company.
Mr. Pressler also stressed eBay’s performance as it has steered a turnaround to better compete with giants like Amazon.
“We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders,’ Mr. Pressler wrote.
This is a developing story. Check back for updates.
