EBay Rejects GameStop's $55 Billion Offer as 'Neither Credible Nor Attractive'
eBay has rejected GameStop’s unsolicited $55.5 billion half-stock, half-cash acquisition proposal, calling it neither credible nor attractive. eBay’s board cited concerns about the financial structure, leverage, and operational risks associated with a combined entity, emphasizing eBay’s strength as an independent business and its consistent delivery of value to shareholders. GameStop currently owns about 5% of eBay’s shares and its offer represented a premium to eBay’s approximately $47 billion market capitalization. Despite GameStop CEO Ryan Cohen’s ambition to significantly increase eBay’s value, eBay’s board expressed confidence in its current management and strategy for sustainable growth. Following the announcement, eBay shares have risen about 24% year-to-date, while GameStop shares are down more than 18% over the past year. Investor Michael Burry recently exited his GameStop position, citing concerns over debt levels in the proposed acquisition.
