The digital marketplace eBay has turned down a massive $56 billion acquisition attempt from video game retailer GameStop, dismissing the unsolicited proposal as lacking both credibility and appeal.
GameStop, under the leadership of Ryan Cohen, revealed earlier this month its pursuit of acquiring eBay as part of a strategy to challenge online retail powerhouse Amazon in the marketplace arena.
The gaming chain, which operates roughly 1,600 retail locations across the United States, outlined plans to transform its stores into pickup and delivery hubs. Among the proposals was a concept for live streaming sales events from GameStop stores showcasing eBay merchandise.
The acquisition proposal valued eBay at $125 per share through a combination of cash and stock, creating a deal worth approximately $55 billion in total equity value. GameStop previously announced it began purchasing eBay shares in February and now holds a 5% ownership position in the company.
eBay Chairman Paul Pressler responded to Cohen in a formal letter, stating the board had thoroughly evaluated GameStop’s proposal and determined that eBay remains a robust and enduring enterprise.
“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,” the letter said.
GameStop has not yet provided a response to requests for comment regarding the rejection. The company’s shares dropped 4% in pre-market trading on Tuesday following the announcement.
