eBay has officially rejected the acquisition proposal put forward by the game retailer GameStop. In an open letter, the eBay board of directors stated that after a comprehensive review with financial and legal advisors, they believe this "voluntarily proposed and non-binding" acquisition offer is "neither credible nor attractive".

In the open letter to Ryan Cohen, eBay Chairman Paul S. Pressler listed six reasons for rejecting the acquisition, including the prospects of eBay's independent development, the uncertainty of GameStop's financing plan, the impact of the acquisition on eBay's long-term growth and profitability, the leverage level and operational risks of the merged company, related valuation issues, as well as GameStop's governance structure and executive incentive mechanisms.

Pressler said that eBay has continuously strengthened its strategic focus, improved execution efficiency, and enhanced the platform and seller experience in recent years, while continuously returning capital to shareholders. He emphasized that the eBay board of directors believes that under the leadership of the existing management team, the company has the ability to continue to achieve sustainable growth and create long-term value for shareholders.

It is reported that in early May, GameStop CEO Ryan Cohen voluntarily proposed a bid to acquire eBay for about $56 billion.

Source: E-commerce Party