It looks like the acquisition of eBay by GameStop isn’t going to be easy. Last week, GameStop and its CEO Ryan Cohen put out an offer to purchase eBay in a $55.5 billion deal that was 50% cash and 50% common stock. Since then, we’ve had all sorts of drama including a disaster CNBC interview and an eBay account suspension.

Now, the Board of Directors of eBay have rejected the “unsolicited, non-binding acquisition proposal” calling it “neither credible nor attractive.”

Dear Mr. Cohen,

The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.

We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) eBay’s standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay’s long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop’s governance and executive incentives.

eBay is a strong, resilient business that has delivered meaningful results over the past several years. 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.

Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and millions of buyers and sellers around the world.

Sincerely,

/s/ Paul S. Pressler

Paul S. Pressler
Chairman of the Board of Directors, eBay

We’ll see if that’s the end to this rather bizarre plan, or if Cohen will go Veruca Salt/David Ellison and press harder until he gets what he wants.