By Arlenys Tabare
At the beginning of May, the American retail chain specializing in video games, GameStop submitted a purchase offer to eBay for $55.5 billiona proposal with which it intends to expand the business and convert its stores into strategic delivery and shipping points.
However, this Tuesday The multinational e-commerce platform rejected the million-dollar offer, considering it “neither credible nor attractive.”mainly due to the acquisition of GameStop’s financing funds and the implications of the merger of both companies.
In this sense, Paul Pressler, Chairman of the Board of Directors of eBay, stated: “We have come to the conclusion that your proposal is neither credible nor attractive. “The eBay Board of Directors is confident that the company, under its current management team, is well positioned to continue driving sustainable growth,” he said.
At the moment, GameStop, led by Ryan Cohen, owns a 5% stake in eBayand with the proposal it was offering $125 per share in cash. In addition to ensuring that its $20 billion financing received approval from TD Bank.
During his purchase offer, Cohen stated: “I’m thinking about turning eBay into something worth hundreds of billions of dollars. “There will be some leverage on the balance sheet to make the acquisition possible, but it will also generate much more revenue than it currently does because it will operate much more efficiently,” he said.
However, in a statement this Tuesday, Pressler noted that “eBay is a strong, resilient business that has seen significant results in recent years. “We have refined our strategic approach, strengthening execution, improving our platform and seller experience, and consistently returning capital to shareholders,” he said.
eBay, founded in 1995 and currently run by Devin Wenig, is valued at about $49 billion, while GameStop, with more than 40 years in the market, has a capitalization of approximately $12 billion.
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