Overview
- eBay’s board, which rejected the unsolicited approach Tuesday, called GameStop’s $125-per-share proposal “neither credible nor attractive.”
- GameStop pitched a half-cash, half-stock deal funded by about $9–9.4 billion in its cash and a TD Securities letter saying it was highly confident up to $20 billion in debt could be raised.
- Directors pointed to six issues that included uncertain financing, added debt and operating risks, possible harm to growth and profit, valuation effects from those risks, and concerns about GameStop’s governance and executive incentives.
- Ryan Cohen has said he may take the offer straight to shareholders, yet a hostile route would be difficult because it requires a larger stake and clear, committed funding.
- Investors have shown skepticism, with eBay shares staying below the offer price and GameStop falling after the bid, and Michael Burry selling his GameStop stake over likely debt and dilution.