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.
245 Articles
245 Articles
Gamestop wants to offer 56 billion dollars for eBay and make Amazon competition. But behind the unusual purchase offer stands a possible mega bonus for professional speculator Cohen.
GameStop Slides After 6% Friday Rally: Can Ryan Cohen Really Pull Off an eBay Buyout?
Shares of GameStop (NYSE:GME | GME Price Prediction) are sliding in early Monday trading, indicated to open down roughly 6% at around $25. The pullback follows Friday’s rally, when the stock closed at $26.53, up 6% on the session. The catalyst is a surprise, non-binding proposal from chief executive officer (CEO) Ryan Cohen for GameStop ... GameStop Slides After 6% Friday Rally: Can Ryan Cohen Really Pull Off an eBay Buyout?
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
The American video game chain GameStop has made an ambitious takeover bid for eBay worth 56 billion dollars (48 billion euros). With this...
The opada company is worth almost four times as much on the stock market as the bidding group, which also triples in revenue. eBay says it will study the offer, although it defends its strategy
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