'Implausible and unattractive': eBay rejects takeover by GameStop

Online retailer eBay has rejected GameStop's $56 billion takeover offer. In a letter sent to GameStop CEO Ryan Cohen, the retailer's chairman Paul Pressler called the idea of buying eBay "neither plausible nor attractive," Bloomberg writes.

The rejection could potentially trigger a fight for control of eBay's board of directors to replace its membership with one more favorable to the GameStop deal, the agency points out. Gamestop could not be reached by Bloomberg immediately.

eBay stock is down 0.28% in the May 12 premarket, while Gamestop shares are down 4.27%.

Cohen made an offer to buy eBay for $125 per share - at a 20% premium to the market price at the time - on Ma. 3. He planned to pay for the deal 50% in cash and 50% in GameStop stock. In addition, to finance the eBay takeover, GameStop received a letter of commitment from TD Bank to provide up to $20 billion in debt financing. However, Cohen's proposal continued to raise doubts among market participants: GameStop's market capitalization of about $10 billion is less than a quarter of eBay's value.

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