US Edition
GameStop Launches $56 Billion Bid to Acquire eBay
Ryan Cohen said the deal could help build a larger e-commerce rival, and GameStop has secured about $20 billion in debt financing, the WSJ reported.
- On Sunday, GameStop CEO Ryan Cohen announced an unsolicited $56 billion offer to acquire eBay, proposing $125 per share in a cash-and-stock deal after building a roughly 5% stake in the e-commerce firm.
- Cohen's pursuit stems from a compensation package potentially worth $35 billion, contingent on lifting GameStop's market capitalization to $100 billion—a strategy that targets a company roughly four times GameStop's current size.
- To finance the transaction, GameStop secured a commitment letter from TD Bank for about $20 billion in debt; eBay shares soared over 13% in after-hours trading following the announcement on Sunday.
- Cohen stated he is prepared to launch a proxy fight if eBay's board rejects the bid, though Bloomberg Intelligence analysts noted a 'low probability of a deal' citing significant execution risks.
- With GameStop holding roughly $9 billion in cash, the massive debt required for the acquisition creates execution challenges that also face regulatory scrutiny and cultural integration complexities between the two companies.
159 Articles
159 Articles
GameStop makes $56 billion bid to take over eBay in hopes of building Amazon rival
Video game retail company and meme stock champion GameStop has made an offer to take over bidding website eBay for $56 billion. If successful, GameStop would take control of a company four times larger in market capitalisation, with CEO Ryan Cohen saying the new entity could rival e-commerce platforms like Amazon. Also in this edition: we take a look back at the collapse of US low-cost carrier Spirit Airlines over the weekend.
For a figure of 56 billion dollars, equal to four times its value: if it is refused it wants to address directly to the shareholders
The video game store has made a bid of 55.5 billion dollars.
American video game retailer GameStop has made a bid to buy online retailer eBay for about $56 billion (1.16 trillion crowns). GameStop has sent eBay an unsolicited takeover bid with the aim of making it a true competitor to Amazon. GameStop CEO Ryan Cohen told The Wall Street Journal (WSJ). eBay's market capitalization is almost four times that of GameStop, making the takeover bid an ambitious attempt.
Gamestop aims to "build" a strong rival for Amazon - eBay stock jumps more than 13% after the announcement
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