American online marketplace giant eBay has rejected a $55 billion takeover proposal from US video game retailer GameStop, describing the offer as “neither credible nor attractive.”
eBay on Tuesday stated that the offer lacked sufficient appeal or financial grounding.
Last week, GameStop officially announced its proposal to merge with eBay, despite the online marketplace being nearly four times its size.
The proposed deal had already sparked concerns on Wall Street, with analysts questioning how GameStop intended to fund such a large acquisition.
In a letter addressed to GameStop and released publicly, eBay’s chairman Paul Pressler raised concerns over how the deal would be funded as well as the level of debt it could place on the company.
Mr Pressler pointed to eBay’s recent progress in strengthening its business and improving competition against major rivals such as Amazon.
“We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders,” Mr Pressler noted.