LONDON, May 12 — UK leader Keir Starmer swept to power promising to end years of chaos in British politics, but numerous policy U-turns, controversies and rock-bottom poll ratings see him teetering on the precipice.

In his first speech as prime minister on July 5, 2024, Starmer promised a government of “service” that would “tread more lightly” on people’s lives following 14 years of Conservative rule dominated by Brexit and infighting.

He sought to make a virtue of his more measured approach, contrasting what he saw as his pragmatic managerialism with the ideological bombast of previous Tory prime ministers Boris Johnson and Liz Truss.

“There’s no such thing as Starmerism and there never will be,” the man himself is said to have told colleagues, according to “Get In”, a book about his leadership of the Labour party written by journalists Patrick Maguire and Gabriel Pogrund.

But soon after entering Downing Street, he struggled to be the safe pair of hands he had portrayed, while his lack of ideology and charisma has left him struggling to sell a story of where he is taking the country.

He insisted on Monday that he will prove his “doubters” wrong, vowing that his ruling Labour party would be “better” and bolder as he tries to quell a groundswell of calls from some of Labour’s approximately 400 MPs to step down or face a leadership challenge.

Successful career

Starmer, born on September 2, 1962, was raised in a cramped, semi-detached house on the outskirts of London by a seriously ill mother and an emotionally distant father who loved animals and rescued donkeys.

After university, he enjoyed a successful career as a human rights lawyer and chief state prosecutor which led to him being knighted by Queen Elizabeth II.

Workers clean the street outside the door to 10 Downing Street, the official residence of Britain’s Prime Minister Keir Starmer, in central London on May 9, 2026. — AFP pic

A keen flautist and Arsenal fan, Starmer became an MP in 2015, succeeding left-winger Jeremy Corbyn as Labour leader five years later, following the party’s worst general election defeat since 1935.

He showed his ruthless side by purging Corbyn, rooting out antisemitism and moving the party back to the more electable centre ground, delivering Labour’s biggest election victory in over two decades.

On becoming UK leader, Starmer pledged to “fix” Britain after years of sluggish growth, a cost-of-living crisis and public services hollowed out by Tory austerity measures.

But he cautioned that the road to recovery would be “long and difficult”.

Troubles

His premiership got off to a bad start when his government announced a hugely unpopular policy to remove winter fuel payments from millions of elderly people, which had not been in Labour’s election manifesto. He later backtracked.

Starmer was also forced into a humiliating climbdown on reforming welfare benefits, backed down in a row with farmers over inheritance tax and angered businesses for increasing a payroll tax and the minimum wage.

The early months were also dominated by anger over a free gifts row, while in September 2025, Angela Rayner resigned as deputy prime minister for underpaying a property tax.

That same month, Starmer sacked Peter Mandelson as his ambassador to Washington over the depth of the envoy’s friendship with late US sex offender Jeffrey Epstein.

The appointment, which Starmer has apologised for, led to the departure of two of his closest aides and the most senior civil servant in the foreign ministry.

Starmer himself has refused to quit, but the scandal still haunts him, contributing to a series of humiliating local election results for Labour last week that renewed calls for his departure.

Reform UK leader Nigel Farage reacts during a visit to St Helens, north west England on May 8, 2026. — AFP pic

Reform threat

While Starmer has been praised for standing up to US President Donald Trump over the Iran war and maintaining European support for Ukraine, he has struggled to fend off growing support at home for the hard-right Reform UK party, led by firebrand Nigel Farage.

And he has one of the lowest popularity ratings ever among prime ministers at just 19 per cent, according to a YouGov poll.

Labour is also shedding support to the left-wing Greens, led by self-described “eco-populist” Zack Polanski.

On Monday, Starmer vowed not to walk away as leader, insisting he was engaged in a “battle for the soul” of the UK, warning that if Labour failed, the country would head down “a very dark path”. — AFP

PARIS, May 12 — The world could face a year of “particularly severe” wildfires, fuelled by climate change and a potentially strong El Nino weather phenomenon, after a record-breaking start to 2026, researchers warned Tuesday.

“This year the global fire season has got off to a very fast start,” said Theodore Keeping, a researcher at Imperial College London.

The area scorched by wildfires so far is 50 per cent higher than average for this time of year, Keeping said in a press briefing.

And this is before El Nino has even formed.

El Nino is the warm phase of a natural climate cycle in Pacific Ocean temperatures and trade winds, which influences global weather patterns and increases the likelihood of droughts, heavy rainfall and other climate extremes.

It also adds heat to a planet already warmed from burning fossil fuels. The last El Nino helped make 2023 and 2024 the top two hottest years on record.

Some weather agencies forecast the coming event will be even stronger – possibly rivalling a “super” El Nino three decades ago.

“The likelihood of harmful extreme fires potentially could be the highest we’ve seen in recent history if a strong El Nino does develop,” said Keeping, who is part of World Weather Attribution (WWA), a network of climate scientists.

Fires have already burnt a total area exceeding 163 million hectares between January and the first week of May, according to data from the Global Wildfire Information System (GWIS).

The total burnt area is around 20 per cent higher than the previous record since global tracking began in 2012, Keeping said.

Records were broken in several countries in west Africa and the Sahel region, as well as Sudan and South Sudan, he said.

The burnt area from Asian wildfires has thus far been nearly 40 per cent larger than the previous record in 2014, Keeping added.

The United States and Australia have also seen unseasonably large areas burnt this year.

WWA co-founder Friederike Otto, a climate science professor at Imperial College London, also warned that “there is a serious risk” that the combination of climate change and El Nino could result in “unprecedented weather extremes” this year.

But she said El Nino is “not the reason to freak out” as it is a natural weather phenomenon that “comes and goes”.

“Climate change is the reason to freak out,” she said, as “it gets worse and worse and worse.” — AFP

PARIS, May 12 — The Cannes Film Festival promises another action-packed fortnight of world premieres, star-studded red carpets, parties and fashion when it begins on Tuesday.

AFP looks ahead at some of the most hotly anticipated moments and appearances:

The main competition

A total of 22 films are competing for the prestigious Palme d’Or for best film which will be handed out on May 23.

Arthouse heavy-hitters such as Spain’s Pedro Almodovar, Japan’s Hirokazu Kore-eda or Romania’s Cristian Mungiu will be up against emerging talent such as Belgian prodigy Lukas Dhont and France’s Lea Mysius.

There is industry buzz around “Hope” by South Korean director Na Hong-jin, starring real-life partners Michael Fassbender and Alicia Vikander, as well as AI- and technology-themed “Sheep in the Box” by acclaimed Japanese director Hirokazu Kore-eda.

The nine-person jury this year will be headed by South Korean director Park Chan-Wook but will also feature Demi Moore, who returns after her star turn in “The Substance” in 2024.

The Cannes Film Festival official logo is seen on the sidelines of the 79th edition of the Cannes Film Festival in Cannes, southern France on May 11, 2026. — AFP pic

Hollywood ghosting

Unlike previous editions which have featured Tom Cruise productions “Mission: Impossible” or “Top Gun”, no major US studios have chosen Cannes to launch a blockbuster.

Hollywood has traditionally provided some mass-market entertainment alongside the more edgy, independent cinema in the Cannes programme.

Reasons for their absence include cost-cutting, their growing preference for tightly controlled social media-led launches, and the risk that a mauling from the Cannes critics can doom a movie.

Vin Diesel and co-star Michelle Rodriguez from “The Fast and the Furious” will fly in for a special 25th anniversary screening of the first film in the franchise.

Travolta

One man not put off by the prospect of scrutiny from some of the world’s most demanding film critics is movie legend John Travolta.

The plane-mad actor will bring some stardust when he unveils his directorial debut, “Propeller One-Way Night Coach”, about a young boy’s journey in the “golden age of aviation”.

A-listers

Other A-listers from around the world will descend on the Cannes red carpets which will be some of the most celeb-heavy places on the planet for the next fortnight.

Scarlett Johansson and Adam Driver are set to promote in-competition “Paper Tiger”, a thriller by American director James Gray, while “Bohemian Rhapsody” star Rami Malek stars in “The Man I Love” by Ira Sachs.

Spanish favourite Javier Bardem, Norwegian star Renate Reinsve, Kristen Stewart and Woody Harrelson are all featuring in films set to screen for the first time on the French Riviera.

Julianne Moore and Cate Blanchett are also set to make appearances, while Barbra Streisand and “Lord of the Rings” director Peter Jackson will pick up lifetime achievement awards.

Member of the jury US actress and producer Demi Moore arrives for a dinner with fellow members of the jury at the Grand Hyatt Cannes Hotel Martinez on May 11, 2026. — AFP pic

A Russian returns

The appearance by one of Russia’s most decorated independent directors, Andrey Zvyagintsev, will be celebrated for film and personal reasons.

The Oscar-nominated director of “Leviathan” and “Loveless” nearly died due to Covid and had to flee his homeland after Russia’s invasion of Ukraine in 2022.

His first movie since 2017 is called “Minotaur” and tackles the hugely sensitive issue of the Russian bourgeoisie grappling with army conscription at the start of the Ukraine war.

AI-created Lennon

Director Steven Soderbergh will present his documentary “John Lennon: The Last Interview” which features The Beatles songwriter hours before his murder.

Soderbergh has turned the audio-only recording into a film, using archival pictures as illustration and – very controversially – AI-generated images of the late singer.

Football

There will be a surprising amount of football at the high temple of cinema, including a British-made documentary “Cantona” about legendary French forward Eric Cantona.

An Argentine-made film, “The Match”, casts a spotlight on the notorious England-Argentina 1986 World Cup match settled by a goal awarded after a handball by Diego Maradona.

Best of the rest

With war-hit Iran in the news, “Rehearsals for a Revolution” by Pegah Ahangarani, a film about political repression, appears timely.

After a Nigerian movie screened in a hallowed official slot at Cannes for the first time last year, twin brothers Arie and Chuko Esiri will represent Nollywood again when they show star-packed “Clarissa”.

Picked in the Director’s Fortnight competition, it features “The Bear” star Ayo Edebiri and “Selma” actor David Oyelowo.

“The Godfather III” and “Ocean’s Eleven” actor Andy Garcia presents “Diamond”, a “passion project” he has been working on for 15 years.

Two big-budget war-themed French productions – one on political colossus Charles de Gaulle by former diplomat Antonin Baudry and another on Resistance hero Jean Moulin by Laszlo Nemes – will be major events for the host country. — AFP

TOKYO, May 12 — Greater protections for endangered emperor penguins and how to manage growing tourism topped the agenda at talks on Antarctica opening in Japan on Tuesday.

Officials from the nearly 60 countries signatory to the Antarctic Treaty are meeting in Hiroshima for annual discussions on protecting and managing the fragile region.

The continent and its abundant wildlife are protected under the 1959 treaty, which designates it as a land of science and peace, while freezing territorial claims.

“The discussions taking place here in Hiroshima are especially important at a time when Antarctica is increasingly affected by global challenges such as climate change,” Francisco Berguno, executive secretary of the Antarctic Treaty Secretariat, told a news conference Tuesday.

Berguno warned the continent “plays a critical role in regulating the Earth’s climate and oceans,” and urged “long-term thinking, careful management, and international trust”.

“Decisions taken here help ensure that human activity in Antarctica remains carefully managed, environmentally responsible and scientifically driven,” he added.

Around 400 government officials and researchers from some 50 countries, including the United States, China, Russia and Ukraine, will take part in the meeting, according to Jiji Press.

Among the most closely watched issues this year will be the status of emperor penguins, which last month the International Union for the Conservation of Nature (IUCN) declared endangered.

Conservation group WWF is urging the animal be designated a specially protected species at the Hiroshima meeting, which could put restrictions on shipping and tourism that are adding pressure to the penguins.

Their numbers have plummeted primarily due to climate change that causes the sea ice where they live, hunt and breed to break up earlier in the year.

“These icons on ice may well be heading down the slippery slope towards extinction by the end of this century unless we act now,” WWF’s chief advisor for polar and oceans, Rod Downie, said in a statement.

But it remains unclear if the meeting can reach consensus on upgrading protections, with some sources saying a decision was unlikely in Hiroshima.

Also high on the agenda will be a sharp rise in tourists – almost 120,000 visited Antarctica in 2024-25 – and delegates will mull potential restrictions on areas or activities, as well as possible quotas.

Experts warn existing frameworks do not take into account the increasing diversity of touristic activity in the region, from kayaking and hot air ballooning, to motorbiking.

“How to regulate and manage tourism in Antarctica has become a key issue,” said Hideki Uyama of Japan’s foreign affairs ministry, who will chair the meeting. — AFP

SINGAPORE, May 12 — Singapore and Indonesia are exploring opportunities to strengthen collaboration with Malaysia towards renewing the Singapore-Johor-Riau Islands (SIJORI) partnership.

Singapore Foreign Affairs Minister Dr Vivian Balakrishnan said the renewed partnership could deliver tremendous benefits to all three countries amid ongoing global uncertainties.

“Within our region, we also hope to see more investments in transport connectivity and digital projects, and to also bring to reality the Asean Power Grid,” he said in a joint press conference with Indonesian Minister of Foreign Affairs Sugiono on Tuesday.

Balakrishnan is currently on a three-day working visit to Indonesia from May 11 to 13, 2026, according to the Ministry of Foreign Affairs.

Commenting on geopolitical developments, Balakrishnan said the ability of Singapore, Indonesia and Malaysia to maintain the Straits of Malacca and Singapore as an open, safe, and vital waterway served as a positive model for other regions globally.

This happened through the Co-operative Mechanism on Safety of Navigation and Environmental Protection in the Straits of Malacca and Singapore, formulated pursuant to the United Nations Convention on the Law of the Sea (UNCLOS).

“The point here is that the success of Indonesia and the effective cooperation that we have in our region has a major impact on the prospects for Asean but can also serve as a positive example for the rest of the world,” he added.

Meanwhile, Balakrishnan also highlighted that both countries remain among among each other’s biggest trading partners, with Singapore having been Indonesia’s biggest foreign investor for more than a decade.

This reflects Singapore’s confidence in and belief in Indonesia’s long-term economic strength, he said.

“We are also seeing good prospects for further growth, especially in the digital and green economies.

“That is why we are looking for more opportunities to enhance our engagements with the large number of provinces in Indonesia,” he added. — Bernama

SINGAPORE, May 12 — Singapore’s Health Sciences Authority (HSA) and China’s National Medical Products Administration (NMPA) have signed a memorandum of understanding to renew commitment to health product regulatory collaboration.

In a statement today, HSA said the renewed partnership will provide support for faster access to new and innovative health products for patients and healthcare systems in both countries.

It seeks to expand on the 2021 agreement, which covered the regulation of chemical drugs, active pharmaceutical ingredients, biological products, traditional Chinese medicines, medical devices, and cosmetics.

“The expanded partnership is expected to strengthen regulatory convergence and enhance opportunities for industry engagement.

“It potentially enables more efficient development, evaluation, and market access pathways for the new innovative therapeutics and medical technologies,” it said.

HSA noted that both agencies will also continue to collaborate on the exchange of regulations, information, and best practices.

The partnership also paves ways for potential joint efforts to combat counterfeit, falsified, and substandard health products, including collaboration on inspections of manufacturing facilities and testing. — Bernama

SINGAPORE, May 12 — Singapore has called for diplomacy and good-faith negotiations to resolve the conflict in West Asia, stressing that the full reopening of the Strait of Hormuz is crucial to global trade and energy security.

Foreign Minister Dr Vivian Balakrishnan underscored these points in a telephone conversation with his Iranian counterpart Dr Seyyed Abbas Araghchi.

“I expressed Singapore’s hope for diplomacy and dialogue to resolve the current conflict in the Middle East.

“It is vital for all parties to engage in negotiations in good faith to secure a durable resolution,” he said in a Facebook post on Tuesday.

Balakrishnan said they also shared views on the long-term future of the Strait of Hormuz.

“Singapore’s consistent position is that all states should enjoy unimpeded right of transit passage through straits used for international navigation as set forth by the 1982 United Nations Convention on the Law of the Sea and customary international law.

“The full reopening of the Strait of Hormuz is critical to regional stability, global energy security and international trade,” he added.

Balakrishnan also stressed the importance of Iran continuing to meet its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons to ensure its nuclear programme remains for peaceful purposes. — Bernama

BRUSSELS, May 12 — The European Union is working on new rules ‌to protect children from the addictive designs of social media such as TikTok, Meta and X, EU Commission President Ursula von der Leyen said today.

“Sleep deprivation, depression, ‌anxiety, self-harm, addictive behaviour, cyberbullying, grooming, exploitation, suicide. Risks are multiplying fast,” von der Leyen said in a speech in Copenhagen.

“These risks are the reality of the digital world. They are not accidental. They are the result of business models that treat our children’s attention as a commodity.”

Von der Leyen said the Commission would specifically target “addictive and harmful design practices” in its Digital Fairness Act (DFA), due to be proposed towards the end of the year.

The DFA would also set strict limits on the use ‌of artificial intelligence in social media, she said, while she advocated for a ⁠minimum age for social media access.

Von ⁠der Leyen said the EU must consider setting ⁠a minimum age for access to ⁠social media, ⁠adding that the Commission might make a proposal this summer on the issue following recommendations from a panel of experts.

“The question is not whether young ⁠people should have access to social media, the question is whether social media should have access to young people,” she said.

The new regulation will strengthen and expand the Digital Services Act (DSA) which requires large platforms to do more to tackle illegal and harmful content, she said.

Under these rules, the ⁠Commission is already investigating TikTok, X and Meta Platforms’ Instagram and Facebook.

“We are taking action against TikTok and its addictive design, endless scrolling, ⁠autoplay and push notifications. The same applies to Meta, because we believe Instagram and ⁠Facebook are ⁠failing to enforce their own minimum age of 13,” Von der Leyen said.

The Commission has also started proceedings against X for the use of its Grok artificial intelligence ‌tool in creating sexual images of women and children.

Spokespeople at the three companies did not immediately respond to requests for comment. — Reuters

KOTA KINABALU, May 12 — The federal government is intensifying efforts to strengthen Sabah’s construction sector through greater investment, stricter project monitoring and enhanced industry capacity-building, said Works Minister Dato Sri Alexander Nanta Linggi.

He said the ministry is committed to improving technical capabilities in Sabah to ensure smoother project delivery.

“If we lack capacity, when we want to build or implement projects, many problems and challenges arise, which can be very costly. It may require extensions of time and sometimes projects become abandoned,” he told a press conference at the International Construction Week (ICW) Borneo and BuildXpo here today.

“That is why building capacity is important. We are committed, through the Ministry of Works, CIDB (Construction Industry Development Board) and the expertise from the Public Works Department (JKR), to assist Sabah.”

Under the 13th Malaysia Plan (13MP), the ministry has allocated RM2.4 billion for federal road projects in Sabah under the 2026 first rolling plan, which includes RM35.5 million for slope repair programmes, RM6.6 million for bridge projects, RM1.845 billion for road works and RM34.5 million for preliminary works.

For this year, RM512.17 million has been allocated for federal road maintenance covering routine repairs, slope stabilisation, bridge maintenance and traffic systems, reflecting a 31.29 per cent increase compared with 2025.

He said the increase was in response to public feedback.

“We understand when people say the roads in Sabah are ‘like the surface of the moon’. We admit there are problems. But it must also be clearly understood that the Ministry of Works and JKR Malaysia are only responsible for federal roads,” he said.

He clarified that state and local roads fall under the Sabah government through the Malaysian Road Records Information System (Maris), a federal funding mechanism distributed by formula.

He said maintenance allocations have also increased sharply, with smaller repair works rising from RM50 million to RM200 million this year, a 300 per cent increase.

“In the past, even last year, maintenance allocations for certain categories were only RM50 million. This year, for smaller but important repair works on federal road surfaces, the allocation has increased to RM200 million,” he said.

He added that all allocations have been committed and works are already underway, saying contractors were selected via a ballot system to ensure fairness and transparency.

“Previously, there were fewer than 100 work packages. This year, Sabah has more than 170 projects. That means many more small-time contractors in categories G1 to G4 now have opportunities,” he said.

He said the programme would also benefit the local economy by circulating funds within communities.

“We are not saying this is enough. Hopefully, next year we can continue doing the same. But at least this year we have made a huge leap in terms of budget, with a 300 per cent increase for this purpose,” he added.

On monitoring, he said the ministry has tightened oversight through senior officials and task forces conducting regular site visits.

“We are really monitoring things very closely now. This is one of the improvements we have implemented at the ministry level to ensure all projects are carried out properly and according to required standards.

“We have to police that as much as possible so we can avoid leakages in all aspects. Monitoring is now very close and very tight,” he said.

Asked about progress, he said the ministry is taking a more forward-looking approach.

“What happened in the past is water under the bridge. But going forward, we want to ensure improvements,” he said.

Nanta also said the ICW Borneo and BuildXpo aims to enhance the local construction industry amid growing infrastructure development, noting the sector is increasingly driven by digitalisation and technology.

“Malaysia is not lagging because the construction industry is indeed an engine of growth for our economy,” he said.

He added that initiatives such as Akademi Binaan Malaysia (ABM) in Sabah have helped train local youth, while a new testing laboratory ensures construction materials meet safety standards.

“We do not want to build something using poor-quality construction materials because naturally the quality of the project would be compromised. It could become dangerous, collapse or suffer various forms of damage,” he said.

He also said Building Information Modelling (BIM), which generated savings in Sarawak’s Pan Borneo Highway project, will be used for the Sabah stretch of the project. — The Borneo Post

KUALA TERENGGANU, May 12 — Two sisters who went missing while bathing in Sungai Jeram Hulu near here were found drowned this evening.

The bodies of Nur Afiqah Shahirah Mohd Shawalluddin, 15, and Nur Shakila Shahirah Azman, 12, from Kampung Jeram were recovered at about 6pm by the Water Rescue Team (PPDA) at a depth of four metres, some 20 metres from the scene of the incident.

Terengganu Fire and Rescue Department (JBPM) operations commander Baharum Hasim said a total of 14 personnel, including officers and PPDA members from the Kuala Terengganu and Kuala Nerus Fire and Rescue Stations, were involved in the search for the victims.

“Search and rescue (SAR) efforts took about three hours to locate the victims due to strong currents and high tides. Both were found at the riverbed.

“The bodies were taken to Sultan Zainal Abidin Hospital (HoSZA) for post-mortems and further action,” he said when met at the scene here today.

Meanwhile, the victims’ grandmother, Esah Salleh, 76, said the family was deeply saddened by the tragedy but grateful that the bodies of her two grandchildren were recovered swiftly.

Esah said the victims’ mother, Suria Sulong, 34, a single mother with intellectual impairment, is still traumatised and has yet to fully comprehend the loss of her two children.

“My daughter has been living with me since her children were small. Apart from my daughter, Nur Afiqah Shahirah also had an intellectual impairment and studied in a special class at Sekolah Menengah Kebangsaan (SMK) Datuk Haji Abdul Rahman Limbong.

“The police called Suria to identify the bodies, but due to her disabilities, she appeared confused and kept asking who had died. It took a while to explain it to her,” she said.

Esah said that despite being deeply saddened, she has come to terms with the passing of her two grandchildren, describing it as a life’s trials. — Bernama

KUALA LUMPUR, May 12 — Tan Sri Azam Baki clocked out of the Malaysian Anti‑Corruption Commission (MACC) headquarters for the final time today as his tenure as chief commissioner officially ended.

Azam urged all MACC personnel to give their full support and cooperation to the incoming leadership, saying the organisation must remain strong and relevant.

“This organisation must remain relevant as envisioned by the earlier leadership. I am only continuing the legacy left behind for the sake of the country and the people,” he said, according to The Star.

He expressed gratitude to the organising committee and MACC officers for the farewell tribute, noting that he had served 42 years in the public sector.

“I am very touched and deeply moved by the support shown by my officers in accompanying me on my retirement at the age of 63,” he said.

Azam began his career with the Anti‑Corruption Agency (BPR) before continuing under the MACC, describing his four‑decade journey as one filled with invaluable experience and challenges.

He became emotional when speaking about his family, calling them his strongest supporters during difficult times.

“My family are my strongest supporters. They had to face challenges and hardship they should never have had to endure,” he said, adding that he was thankful for their calm and support.

Azam also thanked members of the media for their role in sharing information and for supporting him during his tenure as MACC chief commissioner.

“I am truly touched by the support of all my media friends, whether from online portals, electronic media, mainstream media and so on,” he said, according to Bernama.

After six years leading the MACC, Azam said its achievements were the result of collective effort and not individual leadership.

He credited the esprit de corps among MACC officers as a key force behind the organisation’s success in facing challenges and adapting to changes in the crime landscape.

Azam closed his farewell by apologising for any shortcomings during his tenure.

“I seek forgiveness and apologise for any shortcomings in administering and managing this organisation. Truly, all weaknesses came from myself,” he said.

PARIS, May 12 — Online marketplace eBay said today that it had rebuffed a takeover offer from video game retailer GameStop that valued the company at US$56 billion (RM173 billion), calling the unsolicited proposal “neither credible nor attractive”.

“eBay’s board is confident that the company, under its current management team, is well positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders,” board chairman Paul Pressler said in a statement.

GameStop, well known among American gamers but a much smaller company than eBay, made its stock-and-cash deal in early May.

The logo of video game retailer GameStop is seen at a shop in Duesseldorf, western Germany on January 19, 2022. — AFP pic

Analysts quickly expressed doubts that it would be able to finance the deal, though its CEO Ryan Cohen said in a television interview that “we have the ability to issue stock to get the deal done”.

GameStop has roughly US$9.4 billion in available assets and said it had secured a commitment letter from the Canadian investment firm TD Securities for US$20 billion in financing.

Its offer valued eBay at US$125 per share, but in a sign that investors were sceptical of its success, eBay shares closed at just US$108.13 on the Nasdaq composite on Monday.

In its statement, Pressler said “We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders.” — AFP