eBay ($EBAY) said its board rejected an unsolicited $56 billion takeover proposal from GameStop ($GME), calling the offer “neither credible nor attractive” and citing concerns over financing, governance, leverage, and operational risks tied to a combined company. The proposal offered eBay shareholders $125 per share in cash and stock.
- eBay’s board said the proposal created uncertainty around financing and long-term profitability for a merged company.
- GameStop said it had a commitment letter from TD Bank for up to $20 billion in debt financing, contingent on investment-grade ratings.
- eBay shares traded near $108 before the rejection announcement, below GameStop’s $125 per share offer.
- GameStop shares fell about 4% in premarket trading after the rejection, while eBay shares declined around 1%.
- Prediction market Polymarket showed odds of the deal closing falling to roughly 14% after the rejection.
Relevant Companies
- eBay ($EBAY) - Rejected the takeover proposal and will continue operating under its current strategy and management team.
- GameStop ($GME) - Proposed the acquisition and faces scrutiny over financing capacity and execution risks.
- Toronto-Dominion Bank ($TD) - Provided a financing commitment letter tied to the proposed acquisition.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
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