Online seller eBay rejects GameStop's $56 billion takeover offer

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Online seller eBay is rejecting an unsolicited $56 billion takeover offer from GameStop, calling the proposal “neither credible or attractive.”

Ryan Cohen’s GameStop disclosed earlier this month that it was pursuing a takeover of eBay, seeing it as a vehicle to compete with online retail giant Amazon.

The national gaming retailer said at the time that its approximately 1,600 U.S. stores could become drop-off and shipping locations. One proposal included live sales broadcasts from GameStop locations featuring eBay products.

GameStop’s bid is worth $125 per share in cash and stock. The equity value of the proposed deal is $55 billion on paper. The company previously said that it started accumulating shares in eBay beginning in February and currently has a 5% stake.

In a letter from eBay Chairman Paul Pressler sent to Cohen, eBay's board said that it had completed its review of GameStop's offer and believes that eBay is a “strong, resilient business.”

“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 did not immediately respond to a request for comment. The company's stock fell 4% before the market open on Tuesday.