eBay board rejects GameStop takeover bid as neither credible nor attractive

eBay's board of directors has firmly rejected a $56 billion takeover offer from GameStop CEO Ryan Cohen, describing the proposal as neither credible nor attractive.

The rejection came in a letter sent on Tuesday, May 12, signed by eBay chairman Paul S. Pressler. The board cited multiple concerns, including uncertainty over the financial proposal, risks from leverage and leadership structure, and the potential impact on eBay's long-term growth and profitability. It also noted GameStop's governance and executive incentives as factors in the decision.

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Wall Street traders celebrate GameStop's $55.5 billion eBay acquisition bid featuring bitcoin funding.
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GameStop details $55.5B eBay bid with 5% stake, bitcoin funding in focus

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Updating its unsolicited bid announced earlier on May 4, GameStop has disclosed a 5% economic stake in eBay while proposing a $55.5 billion non-binding acquisition at $125 per share in cash and stock. Funding includes $9.4 billion in cash and liquid investments—featuring $368 million in bitcoin—and up to $20 billion in financing, prompting questions over the retailer's cryptocurrency future.

GameStop has officially bid $56 billion to buy eBay, a company four times its size. CEO Ryan Cohen announced the unsolicited offer on Sunday night, proposing $125 per share in a half-cash, half-stock deal. The move aims to combine GameStop's retail presence with eBay's online marketplace amid the retailer's pivot to collectibles like Pokémon cards.

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Following GameStop's $56 billion unsolicited bid for eBay, CEO Ryan Cohen faced sharp grilling on CNBC over financing gaps and deal viability. His vague, incoherent answers drew laughs from hosts and prompted investor Michael Burry to dump his entire stake, spooking markets.

Take-Two Interactive CEO Strauss Zelnick discussed potential acquisitions during an investor call. The comments came after the release of the company’s full fiscal year earnings. Zelnick highlighted three uses for incoming cash from Grand Theft Auto VI.

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Former Impulse creator Larry Kuperman revealed at this year's GDC that GameStop once viewed digital game distribution as a temporary trend. The retailer, which acquired the platform in 2011, shut it down by 2014 despite its early promise as a Steam rival. Kuperman recounted how the company's leadership bet heavily on physical stores.

Takeshi Natsuno has retained his role as CEO of Kadokawa Corporation after shareholders rejected a proposal to remove him on June 24. The activist investor Oasis Management, which holds a 15.25 percent stake, led the effort but failed to secure majority support.

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Former PlayStation Studios chairman Shawn Layden described the future of Xbox Game Pass as having a 'grim prognosis' on LinkedIn. His comments follow signals from Xbox head Asha Sharma that the subscription service is too expensive and requires an overhaul. Microsoft has not updated subscriber figures since reporting 34 million paying users two years ago.

 

 

 

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