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.
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Gametop boss Ryan Cohen wants to swallow the online retailer Ebay. A successful takeover could give him personal profits in billions.
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Independent Journal ReviewIt gets awkward when CNBC host presses CEO about company’s attempted acquisition of online giant
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Madrid. GameStop, the chain of video games stores and consumer electronics protagonist in 2021 of the ‘mememe’ stock fever, presented a non-binding acquisition offer in cash and shares valued at $55.5 billion to take 100% of eBay. GameStop’s proposal provides for the payment of $125 for each eBay share, representing a 20% premium on the closing price in the last session, of which 50% will be paid in cash and the other 50% in regular GameStop sha…
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.
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