eBay on Tuesday rejected an ambitious $56 billion takeover offer from the much ​smaller GameStop, citing concerns over the deal's financing while highlighting its own turnaround efforts that have boosted growth. Analysts ‌and investors have questioned whether the half-cash, half-stock proposal from the $12 billion video game retailer for a company nearly four times its market value could realistically be completed. eBay's shares had been trading well below the proposed offer price of $125 per share since the bid was announced earlier this month. Before the opening bell, eBay stock fell 1 per cent to $107, while GameStop shares dropped to 4 per cent. "We have ​concluded that your proposal is neither credible nor attractive," eBay chairman Paul Pressler said. "eBay's Board is confident the company, under its ​current management team, is well-positioned to continue to drive sustainable growth." GameStop did not immediately respond to requests for comment. The rejection could potentially pave the way for a hostile takeover attempt, as GameStop CEO Ryan Cohen had previously indicated he was prepared to take the proposal directly to eBay shareholders, including the possibility of calling a special meeting. Meanwhile, Cohen has claimed that he has a letter from TD Bank for a $20 billion debt financing commitment; ​however, it is contingent on the combined company having an investment-grade rating. Last week, Moody's stated that the deal would lead to negative credit for eBay. Cohen has also asserted that combining GameStop and eBay could reduce costs and find synergies to form a larger enterprise.<h3>Same cost-cutting measures</h3>He argued that he could strengthen eBay’s profitability by applying the same cost-cutting measures that helped streamline GameStop, while also leveraging its 600 US stores as a physical retail network to position eBay as a stronger competitor to Amazon. The proposed acquisition has generated significant interest in an active mergers-and-acquisitions market, particularly among retail investors who view GameStop CEO Ryan Cohen as a prominent figure following his role in the 2021 short squeeze that inflicted major losses on hedge funds such as Melvin Capital. Although both eBay and GameStop sell collectables like trading cards, their core business models differ sharply. eBay primarily generates revenue by connecting buyers and sellers online without carrying inventory, whereas GameStop purchases products wholesale and resells them through ​physical stores.&nbsp;Also read: <a href="https://www.wionews.com/world/currency-swap-lines-china-uae-dollar-dominance-1778576406988">What are currency swap lines? How it is being used to maintain dollar dominance</a>

The rejection could potentially pave the way for a hostile takeover attempt, as GameStop CEO Ryan Cohen had previously indicated he was prepared to take the proposal directly to eBay shareholders.

eBay on Tuesday rejected an ambitious $56 billion takeover offer from the much smaller GameStop, citing concerns over the deal's financing while highlighting its own turnaround efforts that have boosted growth. Analysts ‌and investors have questioned whether the half-cash, half-stock proposal from the $12 billion video game retailer for a company nearly four times its market value could realistically be completed. eBay's shares had been trading well below the proposed offer price of $125 per share since the bid was announced earlier this month. Before the opening bell, eBay stock fell 1 per cent to $107, while GameStop shares dropped to 4 per cent. "We have concluded that your proposal is neither credible nor attractive," eBay chairman Paul Pressler said. "eBay's Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth." GameStop did not immediately respond to requests for comment. The rejection could potentially pave the way for a hostile takeover attempt, as GameStop CEO Ryan Cohen had previously indicated he was prepared to take the proposal directly to eBay shareholders, including the possibility of calling a special meeting. Meanwhile, Cohen has claimed that he has a letter from TD Bank for a $20 billion debt financing commitment; however, it is contingent on the combined company having an investment-grade rating. Last week, Moody's stated that the deal would lead to negative credit for eBay. Cohen has also asserted that combining GameStop and eBay could reduce costs and find synergies to form a larger enterprise. Same cost-cutting measures He argued that he could strengthen eBay’s profitability by applying the same cost-cutting measures that helped streamline GameStop, while also leveraging its 600 US stores as a physical retail network to position eBay as a stronger competitor to Amazon. The proposed acquisition has generated significant interest in an active mergers-and-acquisitions market, particularly among retail investors who view GameStop CEO Ryan Cohen as a prominent figure following his role in the 2021 short squeeze that inflicted major losses on hedge funds such as Melvin Capital. Although both eBay and GameStop sell collectables like trading cards, their core business models differ sharply. eBay primarily generates revenue by connecting buyers and sellers online without carrying inventory, whereas GameStop purchases products wholesale and resells them through physical stores. Also read: What are currency swap lines? How it is being used to maintain dollar dominance

The rejection could potentially pave the way for a hostile takeover attempt, as GameStop CEO Ryan Cohen had previously indicated he was prepared to take the proposal directly to eBay shareholders.

Game over? eBay turns down GameStop’s massive $56 billion offer: Here's what it means

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Game over? eBay turns down GameStop’s massive $56 billion offer: Here's what it means