eBay · GameStop · Wall Street · CNBC Technology
EBay rejects GameStop's $56 billion takeover bid, calling it 'neither credible nor attractive'
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EBay on Tuesday rejected GameStop 's $56 billion takeover proposal, calling the unsolicited bid "neither credible nor attractive.
Key facts
- Cohen said GameStop had lined up a $20 billion financing commitment from TD Securities, part of TD Bank, and the company has about $9 billion in cash on hand, but the funding gap remains substantial
- GameStop CEO Ryan Cohen last week unveiled an audacious bid for eBay, offering to acquire the online marketplace for $125 per share in a cash-and-stock deal
- EBay on Tuesday rejected GameStop 's $56 billion takeover proposal, calling the unsolicited bid "neither credible nor attractive
- The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it," Paul Pressler, the chairman of eBay's board, wrote in a letter
Summary
GameStop CEO Ryan Cohen last week unveiled an audacious bid for eBay, offering to acquire the online marketplace for $125 per share in a cash-and-stock deal. "The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it," Paul Pressler, the chairman of eBay's board, wrote in a letter. EBay listed several concerns with GameStop's offer, including "the uncertainty regarding your financing proposal," along with operational risks and the debt load that would result from the proposed transaction. Cohen said GameStop had lined up a $20 billion financing commitment from TD Securities, part of TD Bank, and the company has about $9 billion in cash on hand, but the funding gap remains substantial.