eBay rejected GameStop's $55.5 billion takeover bid, deeming it unbelievable and risky.

eBay announced on Tuesday that it is rejecting GameStop's acquisition offer valued at $55.5 billion, describing it as 'neither credible nor attractive.' This decision comes a week after GameStop, led by CEO Ryan Cohen, proposed the acquisition, arguing that the retailer's 1,600 video game locations would provide eBay with a 'national network' for authentication, receipt, and fulfillment. eBay mentioned that the rejection of the offer is due to uncertainties related to the financing of the acquisition by GameStop, as well as operational and leverage risks associated with combining the two companies. GameStop, which already holds a 5% stake in eBay, offered $125 per share in cash and stock. With a market capitalization of approximately $10.4 billion, GameStop is significantly smaller than eBay, which is valued at around $48 billion. GameStop gained notoriety in 2021 as a 'meme stock' when retail investors mobilized on Reddit began buying its shares, increasing their value by over 2,000%.