The rejection comes about a week after GameStop made its offer, with CEO Ryan Cohen arguing that the video game retailer’s 1,600 locations would give eBay a “national network” for authentication, intake and fulfillment.
In a statement, eBay said it rejected the bid because of uncertainty around GameStop’s acquisition financing, as well as the leverage and operational risks of combining the two companies.
GameStop, which already owns a 5% stake in eBay, offered $125 per share in cash and stock.
GameStop didn’t immediately respond to a request for comment.
GameStop, with a market capitalization of about $10.4 billion, is much smaller than eBay, which is valued at about $48 billion. GameStop became a so-called “meme stock” in 2021 after retail investors, mobilized on Reddit, started buying its shares, driving it up by more than 2,000%.
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