eBay rejected a $56 billion takeover bid from GameStop on Tuesday, citing concerns about the deal’s financing, 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 as GameStop, with a market value of about $12 billion, is trying to acquire a company worth nearly four times that.
eBay shares have traded well below the $125 per share offer price since the offer was announced earlier this month. Before Tuesday’s open, eBay shares fell 1% to $107, while GameStop shares fell 4%.
According to Reuters, eBay chairman Paul Pressler said: “We have concluded that your proposal is neither credible nor attractive. The eBay board is confident that the company under its current management team is well positioned to continue to drive sustainable growth.”
(This is a developing story. More to come)
