‘Neither credible nor attractive’: eBay turns down $56 billion takeover bid from GameStop

eBay rejected GameStop's $56 billion takeover bid due to financing concerns, emphasizing confidence in its turnaround strategy. eBay shares fell to $107, while GameStop dropped 4% on the news.(FILES) The logo of e-commerce company Ebay is pictured at an exhibition booth for vehicle parts at the Essen Motor Show in Essen, western Germany on December 4, 2024 (Photo by Ina FASSBENDER / AFP)(AFP)eBay on Tuesday turned down a $56 billion takeover offer from GameStop, citing concerns about how the deal would be financed, while reaffirming confidence in its ongoing turnaround strategy that has helped drive growth.Market analysts and investors have questioned whether the proposal—structured as a mix of cash and stock, could succeed, given that GameStop, with a market value of about $12 billion, is attempting to acquire a company worth nearly four times as much.Since the bid was announced earlier this month, eBay shares have traded well below the offered price of $125 per share. Before the opening bell on Tuesday, eBay stock slipped 1% to $107, while GameStop shares dropped 4%.People also askAI powered insights from this story•5 QUESTIONSeBay rejected the bid, citing concerns about the financing of the deal and stating that the proposal was neither credible nor attractive. The company reaffirmed confidence in its current turnaround strategy and management team.GameStop proposed a takeover offer of $56 billion, structured as a mix of cash and stock, at a price of $125 per share.Market analysts questioned the feasibility of the bid because GameStop, with a market value of about $12 billion, was attempting to acquire eBay, which is worth nearly four times as much.Since the bid was announced, eBay shares have traded below the offered price. eBay stock slipped 1% and GameStop shares dropped 4% on the day eBay turned down the offer.eBay's Board is confident that the company, under its current management, is well-positioned to continue driving sustainable growth, as indicated by their reaffirmation of their ongoing turnaround strategy.According to Reuters, eBay chairman Paul Pressler stated, "We have concluded that your proposal is neither credible nor attractive. eBay's Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth."(This is a developing story. More to come)About the AuthorGarvit BhiraniGarvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. He can be reached on LinkedIn or on @garvitbhirani on X