Key facts
- GameStop CEO Ryan Cohen is considering withdrawing the company's $56 billion bid for eBay.
- eBay's board had previously rejected the takeover proposal.
- Reasons for rejection included financing uncertainties, operational risks, and GameStop's governance structure.
- The market was largely skeptical of the deal, citing GameStop's financing plan and smaller market capitalization.
GameStop CEO Ryan Cohen is reportedly contemplating withdrawing the company's $56 billion offer to acquire eBay, according to Bloomberg News. The e-commerce giant had previously rejected the proposal, citing concerns over financing, operational risks, and GameStop's governance structure.
eBay's Board Chairman Paul Pressler communicated the rejection to Cohen, highlighting uncertainties in GameStop's financing plan, which included $20 billion in loans, and the potential impact on eBay's long-term growth. The market had largely viewed the deal with skepticism, given that eBay's market capitalization is approximately four times that of GameStop.
Cohen had previously suggested that a combined GameStop and eBay could rival Amazon and significantly cut costs. He had also indicated a willingness to pursue a hostile takeover by appealing directly to eBay shareholders if the board remained reluctant.