eBay said it had decided to reject the offer, with the support of its independent advisors.
“We have concluded that your proposal is neither credible nor attractive,” eBay’s board wrote in a letter to GameStop’s CEO Ryan Cohen.
eBay cited concerns around GameStop’s plans to finance the proposal, the potential impact of the proposal on its long-term growth, and the operational risks and leadership structure of a combined entity.
It also said it had taken into account its standalone prospects and GameStop’s governance and executive incentives.
GameStop had not responded to Just Style's request for comment at the time of writing.
Last week, GameStop submitted a proposal to acquire 100% of secondhand selling platform, in a move that GlobalData’s Neil Saunders described as “very audacious”.
“eBay had no discussions with or outreach from GameStop prior to receiving the proposal,” the platform said in a statement.
GameStop had said that it intended to fund the $55.5bn offer for eBay with a combination of half cash and half GameStop stock. Yet the company is only currently worth just $10.7bn, according to GlobalData.
GameStop claimed it has acquired financing worth $20bn, but questions remain about its ability to acquire a much larger rival.
“eBay is a strong, resilient business that has delivered meaningful results over the past several years,” the company said in a statement. “We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders.
"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.”
