In a response letter addressed to GameStop CEO Ryan Cohen, eBay Chairman Paul S Pressler stated that “the proposal was neither credible nor attractive” after the board evaluated several factors, including eBay’s standalone growth prospects, uncertainties surrounding the financing proposal, operational and leverage risks associated with a combined entity, governance structure, executive incentives, and the potential impact on long-term profitability and shareholder value.
eBay rejected GameStop’s unsolicited and non-binding acquisition proposal after a review by its board and advisors.
eBay Chairman Paul S Pressler said the offer was “neither credible nor attractive,” citing concerns over financing, governance, operational risks, and long-term value.
The company said it remains focused on executing its standalone growth strategy.
The board noted that eBay has strengthened its business over the past few years through improved strategic execution, enhancements to its marketplace and seller experience, and consistent capital returns to shareholders.
According to the letter, the company believes its differentiated global marketplace and current management strategy position it well for sustainable growth and long-term value creation.
“Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and millions of buyers and sellers around the world,” the letter concluded.
Founded in 1995 and headquartered in San Jose, eBay operates one of the world’s largest online marketplaces.
Fibre2Fashion News Desk (CG)
