"eBay has rejected GameStop's unsolicited $56 billion takeover bid, calling it "neither credible nor attractive," according to a letter from eBay chairman Paul Pressler seen by . That reaction may set in motion an attempt by GameStop to take the offer directly to eBay's shareholders or replace eBay's board with one favorable to its offer via proxy fight."
"Last week, Gamestop offered $125 a share to purchase eBay, despite having a market value less than a quarter of eBay ($11 billion compared to $45 billion). The bid, consisting of half cash and half GameStop stock, represents a 20 percent premium over eBay's current stock price. GameStop plans to borrow $20 billion to help finance the acquisition but, when asked, CEO Ryan Cohen couldn't explain in detail where it would raise the additional capital required."
"eBay said that it reviewed the offer thoroughly and expressed concerns about financing and debt related to the deal. In his letter, Pressler said that eBay was in a strong position, having executed a turnaround to better compete with rivals like Amazon and "consistently returning capital to shareholders.""
GameStop’s unsolicited $56 billion offer to buy eBay was rejected as neither credible nor attractive. The bid offered $125 per share, with half cash and half GameStop stock, representing a 20% premium. GameStop planned to borrow $20 billion for financing, but its CEO did not provide detailed explanations about where additional capital would come from. eBay said it reviewed the offer thoroughly and raised concerns about financing and debt. eBay cited its strong position after a turnaround, improved competition with rivals, and consistent capital returns to shareholders. GameStop could pursue actions such as taking the offer directly to shareholders or seeking board changes through a proxy fight.
Read at Engadget
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