GameStop won't give up on buying eBay
What's the story
GameStop has said it will continue with its proposed takeover of eBay, despite the latter's rejection of an unsolicited cash-and-stock offer worth some $56 billion. The announcement came in a brief regulatory filing on Friday, which also predicted strong earnings for this year. The news sent GameStop's stock price up by over 2% in after-hours trading.
Acquisition proposal
GameStop's CEO offered to buy eBay in May
In May, GameStop's CEO Ryan Cohen shocked Wall Street by offering to buy eBay. He argued that a combined entity would be a stronger competitor to Amazon and even said he would run it. However, eBay rejected the offer later that month. Despite this setback, GameStop remains committed to its plan of acquiring eBay, which is roughly five times its size.
Information
More information on plans this week
GameStop has promised to share more information on its plans for eBay this week. This will include a detailed presentation of the strategic rationale and operational plan for the combined company. The firm said, "additional materials regarding the proposed transaction are forthcoming."