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Home/Tech/eBay Rejects GameStop’s $56 Billion Acquisition Bid
VERIFIEDBy Xavier Rivera· ·1 min read

eBay Rejects GameStop’s $56 Billion Acquisition Bid

eBay has rejected GameStop's $56 billion acquisition bid after concluding that the proposal is neither credible nor attractive. The board cited eBay's strong standalone prospects and expressed confidence in its current management to deliver sustainable growth and shareholder value.

Source:The Verge
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eBay Rejects GameStop’s $56 Billion Acquisition Bid
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TL;DRAI · 60 sec read

eBay rejects GameStop's $56 billion acquisition bid, citing operational risks and financing uncertainty. The board deems the unsolicited proposal not credible or attractive, noting eBay's strong standalone prospects, doubts over GameStop's $20 billion debt and remaining funds, impacts on growth and profitability, leverage, leadership, and GameStop's governance. eBay affirms confidence in its independent strategy.

eBay's board has turned down GameStop's unsolicited $56 billion takeover bid, telling CEO Ryan Cohen in a Tuesday letter that the proposal is "neither credible nor attractive."

The rejection leans on financing doubts. GameStop has lined up as much as $20 billion in debt for the deal — leaving more than half the offer's value unexplained, a gap the board cites alongside the "operational risks" of combining the companies.

The letter lists six objections. Beyond financing, the board points to eBay's prospects as a standalone business, the merged company's leverage and leadership structure, the deal's effect on long-term growth, what all of that implies for valuation, and GameStop's own governance and executive incentives.
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eBay says it never invited the bid. The company disclosed last week that there had been "no discussions with or outreach from GameStop" before the offer arrived, and the letter closes by backing the current management's strategy, The Verge reports.
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