BREAKINGVIEWS-EBay’s buyout rebuff opens a bigger opportunity

eBay Inc.
GameStop Corp. Class A

eBay Inc.

EBAY

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GameStop Corp. Class A

GME

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Sebastian Pellejero

NEW YORK, May 14 (Reuters Breakingviews) - The online auction site rejected GameStop’s $56 bln bid, deeming the gadfly offer “neither credible nor attractive.” Yet even an unorthodox wake-up call can be useful. AI’s early promise is a neat fit for ecommerce, while tech peers are hacking costs. The company can act on both.

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CONTEXT NEWS

Online auction platform eBay said on May 12 it was rejecting a $55.5 billion takeover bid from video-game retailer GameStop. In a statement, eBay said it rejected the bid because of uncertainty around the acquisition financing, as well as leverage and operational risks from combining the two companies.


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