US EditionGameStop Launches $56 Billion Bid to Acquire eBay
Ryan Cohen said the deal would use $20 billion in TD Bank debt and could cut $2 billion in annual costs within a year.
- On Sunday, GameStop Chief Executive Officer Ryan Cohen announced an unsolicited proposal to acquire eBay for about $56 billion, offering $125 per share after building a roughly 5% stake in the e-commerce platform.
- Cohen aims to transform GameStop into a $100 billion company, a vision tied to a roughly $35 billion compensation package, supported by a commitment letter from TD Bank for about $20 billion in debt financing.
- Bloomberg Intelligence analysts assigned a "low probability of a deal," citing execution risks and leverage concerns, as eBay's roughly $46 billion market value is nearly four times larger than GameStop's $12 billion valuation.
- Cohen indicated he would take the offer directly to eBay shareholders via proxy fight if the board rejects it, while the proposal targets $2 billion in annual cost savings, primarily from eBay's sales and marketing budget.
- Regulatory authorities in the U.S. and E.U. are likely to investigate competition impacts given overlaps in collectibles and resale markets, as the bid marks a strategic pivot from GameStop's traditional brick-and-mortar model.
215 Articles
215 Articles
The Toronto Star
My Mother LodeShares of eBay take off on a $56 billion buyout bid from GameStop’s Ryan Cohen
Shares of eBay are soaring before the opening bell Monday as Ryan Cohen's GameStop pursues an approximately $56 billion takeover of the company, seeing it as a vehicle to compete
Bozeman Daily Chronicle
Shares of eBay take off on a $56 billion buyout bid from GameStop's Ryan Cohen
Shares of eBay are soaring before the opening bell after Ryan Cohen's GameStop announced an attempt to take over the company for about $56 billion, seeing it as a vehicle to compete with online retail giant Amazon. GameStop said that…
GameStop-eBay Takeover: Why Ryan Cohen wants to buy the online marketplace, what strategy is behind it and why the deal remains risky.
Gamers know Gamestop as a dealer for second-hand games. In addition, the company caused a stir with an unusual stock market hype in 2021. Gamestop now delivers headlines again.
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