eBay rejects GameStop’s takeover offer | Infinium-tech
eBay has rejected GameStop’s offer to buy it for $56 billion, saying it was “neither credible nor attractive.” bloomberg Is reporting. The offer came last week, when GameStop said it would pay $125 per eBay share. Interestingly, GameStop’s market cap is around $11 billion, while eBay’s is $45 billion, so it’s definitely a case of a little fish wanting to eat a much bigger fish.
The GameStop bid is half cash and half GameStop stock, and represents a 20% premium over eBay’s current stock price. GameStop will have to borrow $20 billion to finance the acquisition, but its CEO could not say where the money would come from when asked.
eBay has expressed concerns about both the financing of the deal and the debt associated with it. If you’re wondering why GameStop would attempt something like this, here’s an interesting tidbit – its current CEO, Ryan Cohen, could receive $35 billion in stock if he meets certain criteria, including increasing GameStop’s market value to $100 billion, which such an acquisition could certainly help with.
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