Ebay rejects GameStop's offer
According to a report by The New York Times, GameStop made an unsolicited takeover offer of about $56 billion for eBay, aiming to transform the struggling video game retailer into a larger e-commerce competitor to Amazon. The bid was led by GameStop CEO Ryan Cohen, who argued that combining the two companies could create significant cost savings and growth opportunities.
$125 per share
The proposal offered eBay shareholders $125 per share in a mix of cash and stock, representing a premium over eBay’s market price. GameStop had already built a roughly 5% stake in eBay and signaled it was willing to pursue a hostile takeover if necessary.
eBay’s board rejected the bid
However, eBay’s board rejected the bid, calling it “neither credible nor attractive.” The company cited concerns about GameStop’s financing plan, operational risks, and the large gap between the two companies’ market values. Analysts and investors also questioned whether GameStop could realistically finance such a large acquisition.