It comes as almost no surprise that eBay has opposed its takeover by GameStop. The video game retailer had made a $56 billion offer to acquire the online retail giant.
In a statement, eBay’s board of directors announced the rejection of GameStop’s unsolicited takeover proposal. It was deemed « neither credible nor attractive ». eBay’s board chairman, Paul S. Pressler, sent a letter explaining the decision.
« 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. »
