eBay Rejects GameStop Takeover Offer Worth Billions
GameStop made a takeover offer for eBay worth about $56 billion. eBay turned down the offer. eBay chairman Paul Pressler called the offer not credible or attractive. The bid was half cash and half GameStop stock at $125 per share.
Reports say $20 billion in debt financing was secured from TD Bank. GameStop chief Ryan Cohen may now launch a hostile bid.
Sources say Cohen is ready to fight for the deal. He may take the offer directly to eBay shareholders.
Klear Note — A takeover offer means one company tries to buy another. A hostile bid means going directly to shareholders when the board says no.
Key Terms 5
- takeover offer When one company tries to buy another company
- hostile bid Trying to buy a company even after its leaders say no
- proxy fight Convincing a company's shareholders to vote against its leaders
- debt financing Borrowing money from a bank to fund a purchase
- shareholders People who own shares or small pieces of a company