EBay Rejects GameStop's $56 Billion Takeover Bid as Unattractive
EBay rejects GameStop's $56 billion takeover bid, calling it 'neither credible nor attractive'
Cnbc
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EBay has turned down GameStop's $56 billion takeover bid, deeming it 'neither credible nor attractive.' GameStop's CEO Ryan Cohen proposed a cash-and-stock deal offering $125 per share, despite GameStop's smaller market capitalization compared to eBay's. Concerns over financing and operational risks contributed to eBay's decision.
- 01EBay rejected GameStop's $56 billion takeover bid.
- 02GameStop's proposal was for $125 per share in cash and stock.
- 03EBay cited concerns over financing and operational risks.
- 04GameStop has a market cap of approximately $10.3 billion.
- 05GameStop CEO Ryan Cohen claimed to have secured $20 billion in financing.
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EBay has officially rejected GameStop's ambitious $56 billion takeover bid, labeling it 'neither credible nor attractive.' GameStop, led by CEO Ryan Cohen, proposed acquiring the online marketplace at $125 per share in a cash-and-stock deal. However, eBay, which boasts a market capitalization of over $48 billion, expressed skepticism regarding the proposal's financing and operational risks. The board, advised by independent consultants, concluded that the offer lacked credibility. Cohen asserted that GameStop had secured a $20 billion financing commitment from TD Securities and has around $9 billion in cash, but acknowledged a significant funding gap. Analysts have also raised concerns about the lack of synergies between the two companies. In a recent appearance on CNBC's 'Squawk Box,' Cohen provided limited details on the financing strategy for the deal, stating that the offer's specifics are available on GameStop's website.
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