eBay Rejects GameStop's $56 Billion Takeover Bid
eBay rejects GameStop's takeover offer
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eBay has turned down GameStop's $56 billion acquisition offer, deeming it 'neither credible nor attractive.' The proposal included a 20% premium over eBay's stock price and was partly financed by borrowing $20 billion, raising concerns about GameStop's financial viability.
- 01eBay rejected GameStop's $56 billion takeover offer.
- 02The offer included a $125 per share bid, representing a 20% premium.
- 03GameStop's market value is significantly lower at about $11 billion.
- 04The acquisition would require GameStop to borrow $20 billion.
- 05GameStop's CEO, Ryan Cohen, stands to gain $35 billion in stock if certain market value goals are met.
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eBay has rejected GameStop's ambitious takeover offer of $56 billion, labeling it as 'neither credible nor attractive.' The proposal, made last week, included a bid of $125 per share, which is a 20% premium over eBay's current stock price. GameStop, valued at approximately $11 billion, is seeking to acquire eBay, which has a market capitalization of around $45 billion. The offer consists of half cash and half GameStop stock, but GameStop would need to borrow $20 billion to finance the deal. eBay expressed concerns regarding the feasibility of the financing and the associated debt. This bold move is partly motivated by GameStop CEO Ryan Cohen's potential to earn $35 billion in stock if he can boost GameStop's market value to $100 billion, a goal that such an acquisition could facilitate.
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