eBay Rejects GameStop's $56 Billion Takeover As 'Neither Credible Nor Attractive' (reuters.com)
- Reference: 0183198087
- News link: https://slashdot.org/story/26/05/12/1629248/ebay-rejects-gamestops-56-billion-takeover-as-neither-credible-nor-attractive
- Source link: https://www.reuters.com/sustainability/sustainable-finance-reporting/ebay-rejects-gamestops-audacious-56-billion-takeover-bid-2026-05-12/
> EBay on Tuesday rejected a [1]$56 billion takeover bid from the much smaller GameStop over financing doubts, [2]calling the proposal "neither credible nor attractive ." EBay, which has roughly four times GameStop's market value, also underscored that its turnaround efforts under CEO Jamie Iannone have boosted growth, with its stock returning 201% since Iannone took the position six years ago.
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> "We have concluded that your proposal is neither credible nor attractive," eBay Chairman Paul Pressler said in a statement. "eBay's Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth." He also pointed to concerns with GameStop's bid, including its financing, its impact on eBay's long-term growth and the leadership structure of a potentially combined company.
Last week, GameStop's CEO Ryan Cohen delivered one of the [3]most memorable CNBC interviews in recent memory... initially disinterested, then increasingly hostile, with little eye contact, few real answers to basic questions, and repeated robotic deflections to "check the website." It's worth a watch if you have a few extra minutes.
[1] https://slashdot.org/story/26/05/04/1612202/gamestop-offers-to-buy-ebay-for-56-billion
[2] https://www.reuters.com/sustainability/sustainable-finance-reporting/ebay-rejects-gamestops-audacious-56-billion-takeover-bid-2026-05-12/
[3] https://www.youtube.com/watch?v=Bmj2PaxX24E
Wow (Score:5, Informative)
The interview shows the CEO is kind of a jerk. He probably shouldn't be put in situations where communication is a requirement, like public interviews that are intended to help achieve an aggressive goal.
It's like he didn't understand he was on air during the conversation, despite the host clearly calling out that there was an audience listening.
The stark response from eBay is certainly understandable, having seen the interview.
Re: (Score:2)
You nailed it. How the hell did he get a job like that? Being a CEO takes more than wearing a lather version of a Members Only jacket and a faux-hip haircut.
Re: (Score:1)
Yeah. That interview made the CEO look like an incompetent, greasy villian.
Re: (Score:3)
Hoooly shit. I never watch videos but your comment made me want to check.. and that dude is off his meds (or high on something).
Based on that interview alone, I would sell my Gamestop shares if I were a shareholder. Like... How do you get a CEO like that. Wouldn't trust this guy to run a car dealership.
Just Getting Gamestop in the Headlines (Score:2)
This was never a serious offer. Even taking the guarantees at face value, they didn't have the money. The whole point was to keep Gamestop in the news cycle.
Slipped a decimal point? (Score:3)
GameStop has $56billion? Given their turn-of-the-century business model I'd be surprised if they had $56million.
Toystop (Score:4, Interesting)
Gamestop charges way too much for used games. I can buy one much cheaper on ebay. Similarly, gamestop pays way too little for used games, and I can sell one for more on ebay. I guess that makes their interest in buying ebay kind of make sense.
The last time I walked into a gamestop I saw walls covered in toys. And trading cards too. The market is clearly shifting.
Re: (Score:3)
Wouldn't the Gamestop/eBay combined company end up with a ton of debt if this deal goes through as planned?
We've seen this play out before with private equity buyouts, and it never seems to end well for the combined company.
Re: (Score:2)
Basically the same point I raised in an earlier discussion of this... What to call this? A leveraged buyout of the imagination?
However it makes about as much sense as most merger shenanigans and I would approve if at least one of the side effects was that eBay disappeared.
But I want to find a recursive joke somewhere around here... Something about eBay auctions/sales of merger/acquisitions/divestitures?
Re: (Score:2)
> What to call this?
A creative gambit for free marketing.
the reason (Score:1)
The Gamestop CEO has a provision in his employment contract that he gets an absolutely insane amount of stock if the company hits an impossible stock target. If however he were to acquire a much larger company he would hit that target. That is the only reason for doing this. Yes, if done, it would be a disaster (both because the high debt load would force ruinous changes at eBay which is a pretty good company by modern standards, and because the stock given to current eBay stockholders would plummet afterwa
Re: (Score:3)
his parents should have taken him out to the woodshed.
Re: the reason (Score:2)
Or the gravel pit
Re: (Score:2)
no
Re: (Score:2)
> Wouldn't the Gamestop/eBay combined company end up with a ton of debt if this deal goes through as planned?
> We've seen this play out before with private equity buyouts, and it never seems to end well for the combined company.
But the PE firms can make a lot of money (and that is all that matters in the late stage capitalism stage we are in).
Re: (Score:2)
> Wouldn't the Gamestop/eBay combined company end up with a ton of debt if this deal goes through as planned?
Yeah. Somewhere along the line, Gamestop was seduced by the market manipulation angle. It seems that they have not yet gotten such ideas out of their heads.
Re: (Score:2)
The last time I walked into a gamestop nobody had heard of COVID.