"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."
"The seemingly out-of-nowhere proposal came last week when GameStop announced on its website a desire to merge with the e-commerce company in a cash-and-stock deal worth approximately $56 billion. The would-be acquisition baffled Wall Street, in no small part because (1) eBay is approximately four times the size of GameStop and (2) it was not clear that GameStop had the money; an interview with CNBC did little to clear up questions investors had."
"In one exchange, after noting that GameStop appeared to be roughly $16 billion short of what it was offering, anchor Andrew Ross Sorkin asked Cohen, "How does the math work for you, given the price tag, $56 billion, given the market cap of GameStop, which is a fraction of that?" Cohen responded by simply reiterating that the structure of the deal would be "half cash, half stock" and that further details could be found on the GameStop website."
eBay’s board rejected GameStop’s unsolicited proposal to combine the companies in a cash-and-stock deal valued around $56 billion. In a letter to Ryan Cohen, the board stated that independent advisors and the board thoroughly reviewed the proposal and determined to reject it. Paul Pressler added that the proposal was neither credible nor attractive. GameStop had announced the merger desire on its website, which surprised investors because eBay is about four times the size of GameStop and it was unclear whether GameStop had sufficient funds. After Cohen appeared on CNBC, questions remained about how GameStop could finance a deal with eBay’s much larger market value, with Cohen pointing to the half-cash, half-stock structure and directing viewers to the deal details on GameStop’s website.
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