economy
GameStop hits the limits of credibility with $55.5bn eBay bid
The ‘meme stock’ company is remembered for Reddit traders sending its share price into orbit but its move on the auction site looks less likely to take off
TL;DR
- GameStop, known for the 2021 Reddit-fueled stock surge, has proposed a $55.5 billion takeover of eBay.
- eBay's board rejected the offer, calling it 'neither credible nor attractive.'
- A significant portion of the cash required for the bid is contingent on GameStop obtaining an investment grade rating, which is uncertain.
- eBay's shares have performed well, and its owners have little incentive to accept GameStop stock.
- GameStop CEO Ryan Cohen remains determined to pursue the deal, despite the lack of momentum and doubts from GameStop's own fan base.