eBay rejects GameStop’s takeover bid and says their offer is not “credible”
Dexerto • • business
Key Points:
- GameStop's $56 billion bid to acquire eBay has been officially rejected, with eBay calling the proposal "neither credible nor attractive," citing concerns over its feasibility.
- The proposed deal, led by GameStop CEO Ryan Cohen, faced skepticism due to the significant valuation gap—GameStop is valued at $12 billion, while eBay is worth nearly four times that amount.
- Cohen argued the merger could create a stronger competitor to Amazon by leveraging GameStop's physical stores to support eBay's marketplace and applying cost-cutting strategies to boost profitability.
- The bid has divided GameStop investors, with notable figures like Michael Burry selling their stakes over concerns about potential debt and shareholder dilution.
- Despite the rejection, Cohen may pursue a hostile takeover by appealing directly to eBay shareholders through a special meeting.