eBay · GameStop · CBS News Technology
EBay rejects GameStop's $55.5 billion takeover bid
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EBay on Tuesday said it is rejecting GameStop's $55.5 billion takeover bid, calling the offer "neither credible nor attractive.
Key facts
- GameStop, with a market capitalization of about $10.4 billion, is much smaller than eBay, which is valued at about $48 billion
- GameStop, which already owns a 5% stake in eBay, offered $125 per share in cash and stock
- EBay on Tuesday said it is rejecting GameStop's $55.5 billion takeover bid, calling the offer "neither credible nor attractive
- The rejection comes about a week after GameStop made its offer, with CEO Ryan Cohen arguing that the video game retailer's 1,600 locations would give eBay a "national network" for authentication
Summary
The rejection comes about a week after GameStop made its offer, with CEO Ryan Cohen arguing that the video game retailer's 1,600 locations would give eBay a "national network" for authentication, intake and fulfillment. EBay said it rejected the bid because of uncertainty around GameStop's acquisition financing, as well as the leverage and operational risks of combining the two companies. GameStop, which already owns a 5% stake in eBay, offered $125 per share in cash and stock. GameStop, with a market capitalization of about $10.4 billion, is much smaller than eBay, which is valued at about $48 billion.