New Delhi, May 12 -- Video game retailer GameStop saw its share price drop 3.4% on Tuesday, 12 May, hitting an intraday low of $22.39 on the NYSE after eBay rejected a $56 billion takeover offer from the company.

The e-commerce company said its board had unanimously rejected the proposal, citing concerns over financing uncertainty and operational risks associated with combining the two businesses.

eBay's board turned down the offer after considering the "uncertainty" surrounding the financing plan, the operational risks involved, and GameStop's governance structure, Chairman Paul Pressler said in a letter addressed to Ryan Cohen.

Pressler also cited GameStop's executive incentives and the potential impact of the takeover on eBay's long...