eBay rejects GameStop’s unsolicited $56 billion takeover bid, calls it “neither credible nor attractive”
eBay rejected GameStop’s high-profile takeover proposal on Tuesday, calling the bid “neither credible nor attractive” in a short letter from the online marketplace’s board of directors.
Earlier this month, GameStop CEO Ryan Cohen made the unsolicited offer, valuing eBay at about $56 billion — roughly 5x GameStop’s ~$11 billion market cap at the time — in a half-cash, half-stock deal.
In its rejection letter, eBay’s board cited “uncertainty” around GameStop’s financing proposal, the “leverage” and “operational risks” of a combined company, as well as GameStop’s “governance and executive incentives.”
That last concern is already drawing scrutiny, with Cohen facing questions over whether an eBay deal could affect his proposed GameStop pay package. Indeed, the video game and collectibles retailer filed a preliminary proxy statement with the SEC yesterday, asking shareholders to approve Cohen’s new pay package and authorize more shares. Under his new compensation package, Cohen's financial interests are entirely tied to those of shareholders, with cumulative awards at different market cap and EBITDA thresholds.
The bid is also playing out against a fresh meme stock backdrop: GameStop shares briefly jumped last night after posts appeared and disappeared from Keith Gill’s Roaring Kitty account on X, only to give back the gains as users speculated the account had been hacked.
Shares of eBay were modestly lower in premarket trading, while GameStop was still down roughly 4%.
The bid is also playing out against a fresh meme stock backdrop: GameStop shares briefly jumped last night after posts appeared and disappeared from Keith Gill’s Roaring Kitty account on X, only to give back the gains as users speculated the account had been hacked.
Shares of eBay were modestly lower in premarket trading, while GameStop was still down roughly 4%.
