eBay Rejects GameStop's $55.5 Billion Takeover Offer
Online auction giant eBay said it has rejected a $55.5 billion takeover offer from video game retailer GameStop. The company said it has serious doubts about how GameStop would finance a deal of that size. The proposal stands out as one of the boldest tie-up attempts in recent retail history.
eBay's board unanimously rejected the $55.5 billion takeover offer tabled by video game retailer GameStop. In a statement reported by the BBC, the company said the proposed financing structure was not credible and did not serve shareholders' long-term interests.
GameStop has been seeking growth options after building up a large cash and crypto pile in recent years. The retailer aimed to gain scale in the second-hand games and electronics market by tapping eBay's billions of users worldwide. However, eBay's market capitalisation is roughly four times that of GameStop on its own.
Following the announcement, eBay shares posted modest gains on Nasdaq while GameStop slid more than 8%. Wall Street analysts said GameStop could technically return with an improved bid, but the financing question would remain a major obstacle to any deal.
More from North America
US Inflation Climbs to 3.8% as Iran War Drives Up Energy Prices
US consumer prices rose 3.8% year on year in April, the highest reading since May 2023, as the Iran war pushed energy costs sharply higher. The Labor Department release matched analyst forecasts but undermined expectations of further Federal Reserve rate cuts. Bond yields jumped on the news.
Anthropic Targets $900 Billion Valuation in New Funding Round
Anthropic is in talks for a new funding round at roughly a $900 billion valuation, Bloomberg reported. The deal would cement the Claude maker among the most valuable private companies on record. It comes as investors keep committing record capital to AI infrastructure.
GameStop makes $55.5bn takeover offer for eBay
GameStop CEO Ryan Cohen announced a $55.5 billion takeover offer for eBay, seeing potential to make it a much bigger rival to Amazon.