GameStop CEO is Considering Withdrawing from $56 Billion eBay Acquisition Proposal

August 10, According to market sources, Cohen, CEO of GameStop (GME.N), is reportedly considering withdrawing the proposed acquisition of eBay worth $56 billion.

Previously on May 3, GameStop formally proposed to acquire 100% equity of eBay at $125 per share, with a total equity value of approximately $55.5 billion, and disclosed that it had established about 5% economic interest through stock and derivatives. GameStop stated at the time that the transaction was intended to be supported by approximately $9.4 billion in cash and current investments, plus up to $20 billion in acquisition financing from TD Securities.

On June 26, the company further stated that the management team is still advancing the proposed acquisition, with more materials to be released subsequently. However, eBay's board officially rejected the non-binding proposal on May 12, stating that the offer was "neither credible nor attractive," and specifically pointing out uncertainties in the financing plan, post-merger leverage and operational risks, as well as governance and management incentives. eBay had also stated that it had not been in contact or negotiation with GameStop before receiving the proposal.