EBay told GameStop no deal as the online auction shut the door on the video game retailer’s bid to take over the company.
EBay announced on Tuesday, “following a thorough review with the support of its financial and legal advisors, the company’s Board of Directors has determined to reject GameStop’s unsolicited, non-binding acquisition proposal."
GameStop had offered to buy eBay for $56 million. The New York Times said it would have been a cash and stock deal.
In a letter to GameStop’s CEO Ryan Cohen, eBay’s Chairman of the Board, Paul Pressler, called the bid “neither credible nor attractive.”
CNBC noted that while GameStop is worth about $10.3 billion, eBay is worth more than four times that at $48 billion.
Cohen said he had $9 billion in cash and secured $20 billion in financing commitments, but did not disclose where the other $27 billion was coming from, CNBC reported.
On Monday, GameStop, in a regulatory filing, said it wanted to sell more than double the amount of shares it is permitted. The influx of money could have gone to new acquisitions, The New York Times said.
He also proposed that GameStop locations could be used to authenticate and fulfill orders for the auction site, and become hubs for live commerce, CNBC reported.