8legs: Paul pressler

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GameStop’s $55.5bn bid for eBay rejected as ‘neither credible nor attractive’

GameStop made a surprise $55.5 billion bid to acquire eBay, proposing a mix of cash and stock.
eBay’s board rejected the offer, labeling the proposal “neither credible nor attractive” after review.
The board cited financing uncertainty and operational risks as reasons for turning down the deal.
GameStop had previously built a 5% stake in eBay as part of its takeover approach.
The offer valued eBay near $46 billion in market value, highlighting a gap with GameStop’s bid.
Analysts noted GameStop’s financing questions and the bid’s ability to close the deal.
GameStop CEO Ryan Cohen pledged cost-cutting and to turn GameStop into a serious rival to Amazon if successful.
eBay is also pursuing its own strategic moves, including the Depop acquisition for about $1.2 billion in cash.
The meme-stock era of 2021 still frames discussions around GameStop’s growth strategy.
The bid's financing relied on cash on hand and potential debt financing from TD Securities.
The deal could have created a national network for authentication, intake, fulfilment, and live commerce.

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