eBay says no to GameStop's $56 billion buyout offer; says in letter: Board has thoroughly reviewed your proposal and determined to reject it; read full text

GameStop’s $55.5 billion buyout proposal is not ‘good enough’ for eBay. In a letter addressed to GameStop CEO Ryan Cohen, the e-commerce company's board said the offer did not meet its expectations. In this letter, eBay chairman Paul Pressler wrote that the board had “thoroughly reviewed your proposal and determined to reject it.” He further stated that the offer was “neither credible nor attractive,” outlining the company’s position after evaluating multiple aspects of the proposed deal.According to the letter, the board considered eBay’s “standalone prospects” a key factor, indicating confidence in its existing business strategy and no intention to pursue the acquisition. It also raised concerns about the “uncertainty” around how the transaction would be financed, as well as questions about GameStop’s “governance and executive incentives.”In the letter to GameStop CEO Ryan Cohen, eBay board wrote: “Dear Mr. Cohen,The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) eBay's standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay's long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop's governance and executive incentives.eBay is a strong, resilient business that has delivered meaningful results over the past several years. We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders. 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.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.Sincerely,/s/ Paul S. PresslerPaul S. PresslerChairman of the Board of Directors, eBay”