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Analysis-Wall Street awaits GameStop CEO Cohen's next move after eBay rejected takeover bid
GameStop CEO Ryan Cohen's ambitious $56 billion takeover bid for eBay was dismissed by the e-commerce giant, which deemed the offer 'neither credible nor attractive.' Despite having significant cash reserves and a commitment for debt financing, Cohen's vague plans for financing the acquisition have raised skepticism among analysts. With eBay's stock rising sharply this year, Cohen faces a challenging path ahead, including the possibility of a tender offer to shareholders or exerting public pressure on eBay's board.
Key points
Ryan Cohen's $56 billion bid for eBay was rejected as 'neither credible nor attractive.'
GameStop has a $9.4 billion cash reserve and a $20 billion debt financing commitment.
Cohen's current stake in eBay is only 6.6%, insufficient for a proxy fight.