EBay sinks after ICE pulls takeover offer
Intercontinental Exchange reportedly offered more than $30B for the online marketplace
EBay shares fell Friday after the Intercontinental Exchange said it was no longer interested in pursuing the online marketplace. Shares have now given up the majority of the 8.9 percent gain that occurred after news of the offer broke.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EBAY | EBAY INC. | 63.24 | +1.83 | +2.98% |
| ICE | INTERCONTINENTAL EXCHANGE INC. | 159.29 | +0.94 | +0.59% |
“ICE has decided to cease exploring opportunities with eBay,” the Atlanta-based exchange operator said in a press release out Thursday evening, noting the decision was made after holding conversations with investors.
The end of the takeover attempt comes just two days after The Wall Street Journal reported that ICE made an offer worth more than $30 billion, a premium of more than 7 percent to eBay's $28 billion valuation.
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ICE CEO Jeffrey Sprecher said his company felt the need to address the claims after the Journal’s report.
“Ordinarily, we would just keep an open dialogue in the hopes that our paths would cross at a more fortuitous time,” he said on the company's fourth-quarter earnings call on Thursday evening. “But press leaks that suggested there was some imminent business combination has required us to clarify the current situation.”
ICE shares fell 7.5 percent the day the report was published and another 2.5 percent after shareholders voted against the proposal on Thursday. They were higher on Friday.
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EBay shares were up 5.2 percent this year while ICE shares were lower by 2.6 percent.