EBay Rejects GameStop’s $56 Billion Takeover as Not Credible
eBay said the proposal posed financing and leverage risks and reaffirmed its turnaround plan, while GameStop’s stock fell after the rejection.
- On Tuesday, EBay officially rejected GameStop CEO Ryan Cohen's unsolicited $55.5 billion takeover bid, citing significant concerns regarding financing and structural viability of the proposed acquisition.
- Cohen made the unsolicited offer earlier this month, aiming to replicate his cost-cutting playbook to boost EBay's profitability while leveraging around 1,600 GameStop stores to compete with Amazon.
- Dismissing the proposal, EBay's chairman wrote that the deal is "neither credible nor attractive," citing uncertainty regarding financing and operational risks that threaten long-term growth.
- Analysts and investors have questioned the feasibility of the half-cash, half-stock bid, as the smaller retailer's offer is valued at nearly four times less than EBay's market value.
- Following the bid, Michael Burry of "The Big Short" fame sold all his shares, while some GameStop investors expressed frustration with the approach, signaling potential internal conflict.
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Belfast TelegraphEBay rejects £41.4 billion GameStop takeover offer
The board of EBay labelled the proposal as ‘neither credible or attractive’. EBay has turned down a 56 billion US dollar (£41.4 billion) takeover move from GameStop, labelling the proposal as “neither credible or attractive”. GameStop boss Ryan Cohen launched an unsolicited offer of 125 dollars (£92.40) per share – half in cash and half in GameStop stock – to eBay shareholders last week. However, the online marketplace’s board confirmed on Tuesd…
Online seller eBay rejects GameStop’s $56 billion takeover offer
Online seller eBay is rejecting an unsolicited $56 billion takeover offer from GameStop, calling the proposal “neither credible or attractive.”Ryan Cohen’s GameStop disclosed earlier this month that it was pursuing a takeover of eBay, seeing it as a vehicle to compete with online retail giant Amazon
eBay Responds to GameStop $56 Billion Takeover Bid
GameStop shocked the financial world last week with a surprise $56 billion takeover bid to fold eBay into its portfolio. A few days have passed since the offer and eBay is ready to respond to the offer. eBay Rejects GameStop’s $56 Billion Bid Screenshot: Valve, Ebay GameStop’s attempt to buy eBay first went public earlier in May and it only took eBay about a week to come to a decision. During that week, the attempted takeover got a ton of covera…
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