Online marketplace takes into account uncertainty around US video games retailer’s financing proposal
The board of eBay has rejected the US video games retailer GameStop’s surprise $55.5bn bid (£41bn) for the online marketplace, describing the proposal as “neither credible nor attractive”.
Earlier this month, GameStop made an unsolicited bid for eBay, publishing a letter on its website outlining a half-cash, half-stock proposal.
GameStop trying to buy eBay for $55.5bn? They can barely keep their own stores stocked. This seems like a desperate Hail Mary.
Half cash, half stock? With GameStop’s stock volatility, eBay was right to call that neither credible nor attractive. Smart move by the board.
Interesting that GameStop published the letter on their website—almost like they wanted to pressure eBay publicly. Didn’t work though.
I’m surprised eBay didn’t even negotiate. $55.5bn is a huge sum, even if the financing is shaky. Must be worried about GameStop’s declining business.
The fundamentals are actually pretty solid once you strip out the noise. (d7f426)
Debt levels across both sovereign and corporate sectors warrant close attention. (0394ea)