EBay rejects GameStop’s $56bn bid as ‘neither credible nor attractive’
Summary
EBay has refused GameStop’s $56 billion offer to buy the company, calling the offer not believable or appealing. EBay’s leadership says their company is growing well under CEO Jamie Iannone and doubts GameStop’s ability to finance the deal.Key Facts
- GameStop offered $56 billion to take over eBay.
- EBay is about four times bigger in market value than GameStop.
- EBay’s stock price has risen 201% during CEO Jamie Iannone’s six years in charge.
- EBay’s board said GameStop’s offer is "neither credible nor attractive."
- GameStop said it would pay with half cash, half stock, backed by a $20 billion loan offer from TD Bank.
- Moody’s said the deal would hurt eBay’s credit rating.
- GameStop CEO Ryan Cohen wants to merge the companies and cut costs using GameStop’s 600 stores.
- Some investors, like Michael Burry, oppose the bid, fearing it would add debt and reduce share value.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.