GameStop has made an unsolicited offer to acquire eBay for $125 per share. This offer values eBay at approximately $55.5 billion and represents a 20% premium over its closing price of $104.07.
As of early Tuesday, GameStop holds a roughly 5% stake in eBay. The company secured a commitment letter from TD Bank for up to $20 billion in debt financing to support this cash-and-stock deal.
Ryan Cohen, GameStop’s chairman, is expected to serve as CEO of the combined company if the acquisition is successful. He stated, “EBay should be worth — and will be worth — a lot more money.”
This bold move comes as GameStop aims to transition from being labeled a ‘meme stock’ into a serious player in the e-commerce sector, directly competing with giants like Amazon.
Cohen expressed ambitions to transform eBay into something worth hundreds of billions of dollars. However, it remains uncertain whether eBay’s board will view GameStop as a credible acquirer.
Additionally, analysts question the feasibility of this bid due to the significant difference in market capitalization—GameStop’s was around $11 billion before this news broke, while eBay’s stood at approximately $46 billion.
Cohen indicated that he is prepared to take the offer directly to shareholders in a proxy fight if necessary. He emphasized that under the proposed deal, he would not accept any salary or bonuses.
