eBay rejects GameStop’s $56 bn takeover bid
AFP | Paris
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Online marketplace eBay said yesterday that it had rebuffed a $56 billion takeover offer from video game retailer GameStop, calling the unsolicited proposal “neither credible nor attractive”.
“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,” board chairman Paul Pressler said in a statement.
Game Stop, well known among American gamers but a much smaller company than eBay, made its stock-and-cash deal in early May.
Analysts quickly expressed doubts that it would be able to finance the deal, though its CEO Ryan Cohen said in a television interview that “we have the ability to issue stock to get the deal done”.
GameStop has roughly $9.4 billion in available assets and said it had secured a commitment letter from the Canadian investment firm TD Securities for $20 billion in financing.
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