eBay rejects GameStop's takeover bid, calling it 'neither credible nor attractive' |
eBay rejects GameStop's takeover bid, calling it 'neither credible nor attractive'
eBay's board cited financing uncertainty, operational risks, and concerns about GameStop's governance in turning down the unsolicited offer
Cheng Xin / Getty Images
GameStop $GME's unsolicited $56 billion bid to acquire eBay was turned down Tuesday, with eBay's board declaring the offer "neither credible nor attractive."
Six considerations shaped the board's rejection, Pressler explained in his letter to Cohen: how eBay would fare on its own, doubts about the financing plan's viability, what the transaction would mean for eBay's long-term growth and profitability, the debt burden and operational exposure a merger would create, how those risks affected the deal's valuation, and questions about GameStop's governance structure and executive pay incentives.
Pressler, in his statement, quoted directly: "eBay is a strong, resilient business that has delivered meaningful results over the past several years. We have........