EBay Rejects GameStop’s $56 Billion Takeover as Not Credible
eBay said the proposal was neither credible nor attractive as it cited financing uncertainty, leverage risks and weaker long-term growth prospects.
- 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.
48 Articles
48 Articles
EBay 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…
EBay Rejects GameStop’s $56 Billion Takeover Bid: ‘Your Proposal Is Neither Credible nor Attractive’
Online retailing giant eBay has turned down GameStop CEO Ryan Cohen's unsolicited $56 billion takeover proposal, calling it "neither credible nor attractive."
The online sales giant refused GameStop's $56 billion offer this Tuesday. The company justifies this rejection, among other things, by "uncertainty" covering the financial capacity of the video game company to acquire it. - No new competitor for Amazon: eBay "refuses" the offer to buy GameStop at nearly $56 billion (International).
eBay rejects 'unsolicited' $55B takeover bid from GameStop
One of the world’s largest online marketplaces, eBay, has rejected a $55.5 billion takeover offer from video game store GameStop. Paul Pressler, chairman of the board of directors for eBay, on Tuesday said the “unsolicited” bid was “neither credible nor attractive.” “We have taken into account such factors as 1) eBay’s standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay’s long-term g…
The American video game chain GameStop wants to swallow the online platform Ebay – for about 55 billion dollars. But the head of the Ebay board of directors finds the offer "neither credible nor attractive".
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