BTC news: EBay rejects GameStop’s $56 billion bid as bitcoin exposure back in focus

EBay has rejected GameStop's $56 billion takeover offer, with its board deeming the half-cash, half-stock proposal "neither credible nor attractive" due to financing concerns and a belief that EBay is better positioned under its current management. This rejection was anticipated, as EBay's stock price had remained significantly below GameStop's offer price, indicating investor skepticism. The situation now brings GameStop's substantial bitcoin exposure, managed through a covered-call options strategy and held via Coinbase Prime, back into focus. GameStop's bid relied on a combination of cash, investments, and debt financing from TD Bank, but this was contingent on maintaining an investment-grade rating, which Moody's has already flagged as a credit negative for EBay. Further complicating matters, GameStop's CEO, Ryan Cohen, had previously prioritized the EBay deal over bitcoin, raising questions about whether the bitcoin holdings could be unwound to fund the acquisition. Despite these efforts, market skepticism persists, with EBay shares trading below the offer price and GameStop shares declining. The deal also faced opposition from some of GameStop's own investors, including Michael Burry, who expressed concerns about potential debt and shareholder dilution.

(Source：CoinDesk)