EBay rejects GameStop’s $55.5 billion takeover bid, calling it “neither credible nor attractive”

EBay on Tuesday said it is rejecting GameStop’s $55.5 billion takeover bid, calling the offer “neither credible nor attractive.”

The rejection comes about a week after GameStop made its offer, with CEO Ryan Cohen arguing that the video game retailer’s 1,600 locations would give eBay a “national network” for authentication, intake and fulfillment. 

In a statement, eBay said it rejected the bid because of uncertainty around GameStop’s acquisition financing, as well as the leverage and operational risks of combining the two companies. 

GameStop, which already owns a 5% stake in eBay, offered $125 per share in cash and stock.

GameStop didn’t immediately respond to a request for comment.

GameStop, with a market capitalization of about $10.4 billion, is much smaller than eBay, which is valued at about $48 billion. GameStop became a so-called “meme stock” in 2021 after retail investors, mobilized on Reddit, started buying its shares, driving it up by more than 2,000%.