GameStop’s $55.5bn bid for eBay rejected as ‘neither credible nor attractive’
Summary
GameStop offered to buy eBay for $55.5 billion, but eBay’s board rejected the offer, calling it not believable or attractive. GameStop’s CEO, Ryan Cohen, did not clearly explain how the company would pay for the deal, and eBay is continuing its own business plans.Key Facts
- GameStop made an unsolicited $55.5 billion bid to buy eBay.
- eBay's board reviewed and rejected the offer, citing doubts about its financing and risks.
- GameStop’s market value was about $12 billion, much less than eBay’s $46 billion.
- GameStop has a 5% stake in eBay and offered $125 per eBay share.
- The offer included $9.4 billion in cash and $20 billion in possible loans from TD Securities.
- GameStop’s shares dropped more than 12% after the bid announcement.
- Ryan Cohen said GameStop could improve eBay by cutting costs and competing with Amazon.
- eBay is buying Depop, a fashion resale app, to attract younger shoppers.
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