eBay Rejects GameStop’s $56B Half-Cash, Half-Stock Takeover Offer
GameStop seeks to increase its authorized common shares from 1 billion to 2.5 billion to finance a half-cash, half-stock $56 billion takeover offer for eBay. eBay called the unsolicited bid neither credible nor attractive and has formally rejected the proposal.
1. GameStop’s Share Authorization Increase
GameStop has filed to raise its authorized common shares from 1 billion to 2.5 billion, aiming to secure a reserve for strategic transactions and ensure sufficient equity to complete its proposed acquisition of eBay.
2. Structure of the $56 Billion Offer
The unsolicited proposal values eBay at $56 billion and is structured as half cash and half newly issued GameStop stock; GameStop currently has 448.7 million shares outstanding with over 269 million shares available under its existing authorization.
3. eBay’s Rejection and Rationale
eBay’s board unanimously deemed the offer neither credible nor attractive and has turned down the proposal, though the company has left open the possibility of evaluating revised or competing bids in the future.