May 12 (UPI) -- EBay on Tuesday rejected the proposed offer from GameStop to buy it, calling the offer "neither credible nor attractive."
In a letter posted Tuesday, eBay Board Chair Paul S. Pressler wrote that "eBay is a strong, resilient business that has delivered meaningful results over the past several years."
"We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) eBay's stand-alone 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."
GameStop submitted the unsolicited, $55.5 billion offer on May 4, which is also when the video game retailer gained a 5% stake in eBay. The offer was for $125 per share, half in cash and half in stock, which was a 46% rise over the e-commerce giant's Feb. 4 closing share price.
GameStop's CEO said that eBay could be doing better.
