EBay rejects £41.4 billion GameStop takeover offer

EBay has turned down a 56 billion US dollar (£41.4 billion) takeover move from GameStop, labelling the proposal as “neither credible or attractive”.

GameStop boss Ryan Cohen launched an unsolicited offer of 125 dollars (£92.40) per share – half in cash and half in GameStop stock – to eBay shareholders last week.

However, the online marketplace’s board confirmed on Tuesday that it had now rejected the move.

In a letter, eBay chairman Paul Pressler said it reviewed the offer but believes that eBay is a “strong, resilient business”.

He added: “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.”

GameStop, which runs around 1,600 shops around the US, said it started accumulating eBay shares earlier this year and currently has a 5% stake.

Mr Cohen had previously indicated he would take his proposal directly to eBay shareholders if the company’s board rejected the deal.