GameStop Seeks to Acquire eBay in $56B Takeover Deal
GameStop has made a $56B bid to acquire eBay, offering $125 per share in cash and stock, a roughly 20% premium to market price. Despite GameStop being significantly smaller than eBay, Ryan Cohen says the goal is to turn the platform into a real competitor to Amazon.
Key points:
- GameStop has built an approximately 5% economic stake in eBay
- Up to $20B in debt financing has been secured
- Cohen indicated he may take the proposal directly to shareholders if the board rejects it
- He intends to become CEO of the combined company
The strategy includes using GameStop’s 1,600 U.S. stores for authentication, fulfillment, and live commerce, while targeting $2B in annual cost savings within 12 months after closing. eBay shares rose more than 13% following the announcement.