eBay Rejected GameStop’s Offer, Calling it “Neither Credible Nor Attractive”
The answer is in, and for many, it’s a breath of relief. In a recent press release on Tuesday, May 12, it was confirmed that eBay rejected GameStop’s offer.
The online marketplace received an offer from GameStop on May 3 that proposed to acquire 100% of eBay. GameStop shared the news, saying they were hoping to create a marketplace that would rival Amazon. And eBay has finally replied.
PR News Wire released a response letter today to GameStop CEO Ryan Cohen, saying that “The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.”
According to the letter, the proposal was “neither credible nor attractive.” The letter continues, saying that “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.”
“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.”
According to board chairman Paul Pressler, who wrote the letter, eBay rejected GameStop due to various considerations, including eBay’s “standalone prospects,” the “uncertainty” regarding how the deal would be funded, and GameStop’s “governance and executive incentives,” among other factors.
The news that GameStop wanted to acquire eBay has been everywhere, especially with Cohen seemingly making a joke of the situation. On May 6, the GameStop CEO posted various items on eBay with extreme price tags, eventually posting his page on X saying, “I’m selling stuff on eBay to pay for eBay.”
Along with that, Cohen recently spoke with Business Insider and confessed he “wasn’t passionate about GameStop.” Apparently, he never wanted to be the CEO of GameStop at all. Yet, he’s “passionate about eBay. I believe in eBay’s business.”
“I’m going to continue doing whatever I need to do in order to buy the business,” he continued. “I’m going to make myself CEO of both.”
While it’s amazing to hear he’s dedicated to eBay, his attitude with GameStop and his bid stunts might have also been factors as to why the secondhand marketplace rejected the offer, though there’s no way to know for sure. But if Cohen is sincerely passionate about eBay, this might not be the last we hear from him.
