(File Photo: Source for Photo: FILE – A GameStop sign is displayed above a store in Urbandale, Iowa, on Jan. 28, 2021. (AP Photo/Charlie Neibergall, File)

Noah Haswell, Beaver County Radio News

(Grapevine, TX) eBay said Tuesday it has rejected GameStop’s $56 billion takeover bid, calling the proposal “neither credible nor attractive.”

The rejection comes about a week after GameStop made its offer. CEO Ryan Cohen argued the retailer’s 1,600 stores would provide eBay with a “national network” for authentication, intake and fulfillment.

In a statement, eBay cited uncertainty surrounding GameStop’s acquisition financing, along with concerns about leverage and operational risks tied to combining the two companies.

GameStop, which already owns a 5% stake in eBay, offered $125 per share in cash and stock. The company did not immediately respond to a request for comment.

Despite the bid, GameStop remains significantly smaller than eBay. GameStop has a market capitalization of about $10.4 billion, compared with eBay’s roughly $48 billion valuation.

GameStop became known as a “meme stock” in 2021 after retail investors on Reddit drove its shares sharply higher during a historic trading frenzy.