From PC Mag: eBay isn’t merging with GameStop, for now. The e-commerce platform has rejected GameStop’s unsolicited $56 billion takeover bid, calling it “neither credible nor attractive.”
EBay’s board confirmed the decision in a letter to GameStop CEO Ryan Cohen on Tuesday. The board’s primary concerns centered on how the deal would be financed, the operational risks involved post-acquisition, and the acquisition’s impact on eBay’s growth and valuation.
“EBay is a strong, resilient business that has delivered meaningful results over the past several years,” said Board Chair Paul S. Pressler. “EBay's Board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.”
Earlier this month, Cohen’s acquisition offer came as a shocker to many, given that his company generates only about one-third of eBay’s revenue. He wanted to serve as the CEO of the combined company, cut eBay’s expenses, and turn it into an entity worth hundreds of billions of dollars. His plan was to pay for 50% of the acquisition in cash and the other 50% in GameStop common stock. He claimed to have secured $20 billion in debt financing from TD Bank.
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