EBay Rejects GameStop’s $55 Billion Takeover Bid
The New York Times • • business
Key Points:
- eBay rejected GameStop's proposal to merge in a $55 billion cash-and-stock deal, calling it "neither credible nor attractive."
- GameStop's offer, announced last week, raised skepticism on Wall Street about its financing and feasibility, with CEO Ryan Cohen not clarifying funding details.
- eBay's chairman, Paul Pressler, cited concerns over payment uncertainty and potential debt increase in a letter after consulting legal and financial advisors.
- A key part of GameStop's bid was a non-binding letter from TD Bank expressing confidence in raising $20 billion, contingent on the combined company achieving investment-grade credit ratings.
- eBay doubts the merged entity would attain investment-grade status, contributing to its rejection of the proposal.