EBAY yesterday rejected a $56 billion takeover bid from the much smaller GameStop over financing doubts, calling the proposal “neither credible nor attractive.”
EBay, which has roughly four times GameStop’s market value, also underscored that its turnaround efforts under CEO Jamie Iannone have boosted growth, with its stock returning 201 per cent since Iannone took the position six years ago.
“We have concluded that your proposal is neither credible nor attractive,” eBay chairman Paul Pressler said in a statement. “eBay’s board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth.”
He also pointed to concerns with GameStop’s bid, including its financing, its impact on eBay’s long-term growth and the leadership structure of a potentially combined company.
Last week, GameStop CEO Ryan Cohen surprised Wall Street with his bid, which included a $20bn debt financing commitment from TD Bank.
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