U.S. markets closed

eBay Stock Surge As Report Says NYSE Owner Offered Takeover Deal

Neer Varshney

The shares of eBay Inc. (NASDAQ: EBAY) surged on Tuesday as the Wall Street Journal reported that the Intercontinental Exchange (NYSE: ICE) had offered a takeover deal to the e-commerce company.

What Happened

The New York Stock Exchange owner ICE approached eBay with a takeover offer for the second time recently, the Wall Street Journal reported Tuesday.

According to the Journal, the deal values eBay at more than $30 billion, a premium on its market value of $28 billion at the time.

ICE is only interested in buying eBay core marketplace business, the Journal said, but not the classifieds unit, which eBay has been looking to sell.

eBay Not Engaged In ‘Meaningful Way,' ICE Says

In a statement later on Tuesday, after markets closed, ICE confirmed its interest in the e-coomerce giant but said that the company wasn't responding to its offer.

"ICE approached eBay to explore a range of potential opportunities that might create value for the shareholders of both companies. eBay has not engaged in a meaningful way. We are not in negotiations regarding the sale of all or part of eBay," it said.

Price Action

eBay's shares closed 8.78% higher at $37.41 on Tuesday. The stock traded slightly slower in the after-hours market at $37.20 as ICE put out the statement.

ICE's shares closed 7.45% lower at $92.59, recovering slightly in after-hours at $93.22.

Photo Credit: Public domain photo via Wikimedia.


See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.