eBay rejects an unsolicited takeover proposal from GameStop, with the online retailer describing the offer as “neither credible nor attractive.” Multiple outlets report that GameStop submitted a nonbinding bid valuing eBay at about $55.5–$56 billion, pitched at $125 per share and structured as a mix of cash and GameStop stock. In response, eBay says it does not find the proposal compelling and casts doubt on the bid’s credibility and appeal. Analysts and investors cited questions about whether the transaction could be financed as proposed and about the strategic rationale for GameStop—particularly given the scale of the offer relative to eBay’s market value and the challenges of integrating businesses operating in different retail segments. Other coverage notes that eBay’s decision could prompt GameStop to pursue further pressure or a hostile approach, though no new formal action is reported in these accounts. The news also moves company shares: eBay shares fall in reporting from some outlets, while GameStop shares drop following the rejection. The proposal and eBay’s response reflect an ongoing dispute over the future of control of eBay.
eBay rejects GameStop’s roughly $56 billion takeover bid
eBay rejects an unsolicited takeover proposal from GameStop, with the online retailer describing the offer as “neither credible nor attractive.” Multiple outlets report that GameStop submitted a nonbi...
- GameStop makes an unsolicited takeover proposal for eBay valued at about $55.5–$56 billion (reported at roughly $125 per share).
- eBay rejects the offer and characterizes it as “neither credible nor attractive.”
- Reports cite financing questions about how GameStop would fund the cash-and-stock transaction.
- Some analysts and investors question the strategic rationale for the acquisition and whether it could be completed.
- The rejection is followed by declines in both companies’ shares in coverage.
eBay has rejected GameStop’s surprise $55.5 billion (£41 billion) takeover bid, calling the proposal “neither credible nor attractive”. The online marketplace said its board and advisers had reviewed the unsolicited offer from the US video games retailer and decided not to engage. GameStop, led by chief executive Ryan Cohen, tabled the cash-and-stock proposal earlier this...
3 months agoEBay called GameStop's takeover bid 'neither credible nor attractive.'
3 months agoeBay board doubts GameStop's ability to buy and operate the much larger firm.
3 months agoAn anonymous reader quotes a report from Reuters: EBay on Tuesday rejected a $56 billion takeover bid from the much smaller GameStop over financing doubts, calling the proposal "neither credible nor attractive." EBay, which has roughly four times GameStop's market value, also underscored that its turnaround efforts under CEO Jamie Iannone have boosted growth, with its stock returning 201% since Iannone took the position six years ago. "We have concluded that your proposal is neither credible nor attractive," eBay Chairman Paul Pressler said in a statement. "eBay's Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth." He also pointed to concerns with GameStop's bid, including its financing, its impact on eBay's long-term growth and the leadership structure of a potentially combined company. Last week, GameStop's CEO Ryan Cohen delivered one of the most memorable CNBC interviews in recent memory... initially disinterested, then increasingly hostile, with little eye contact, few real answers to basic questions, and repeated robotic deflections to "check the website." It's worth a watch if you have a few extra minutes. Read more of this story at Slashdot.
3 months agoEBay Inc. rejected a $56 billion takeover offer from GameStop Corp. Chief Executive Officer Ryan Cohen, describing the unsolicited bid as “neither credible nor attractive.” EBay’s board turned down the offer after taking into account “uncertainty” around the financing plan, the operational risks involved and GameStop’s governance, Chairman Paul Pressler said in a letter addressed to Cohen. Pressler also cited GameStop’s executive incentives and a takeover’s potential impact on eBay’s long-term growth. Bloomberg's Cecilia D'Anastasio joins Bloomberg Intelligence Radio for a closer look. (Source: Bloomberg)
3 months agoIn a letter from eBay Chairman Paul Pressler, eBay’s board said that it had completed its review of GameStop’s offer and believes that eBay is a “strong, resilient business.”
3 months ago
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