GameStop has made an unsolicited offer to acquire eBay for $125 per share, valuing the company at approximately $55.5 billion. This offer represents a 20% premium over eBay’s closing price of $104.07.
GameStop has built a roughly 5% stake in eBay and secured a commitment letter from TD Bank for up to $20 billion in debt financing. Ryan Cohen, GameStop’s CEO, is expected to lead the combined company if the deal closes.
GameStop’s market capitalization stood around $11 billion before the announcement, while eBay’s market capitalization was about $46 billion.
Cohen stated, “EBay should be worth — and will be worth — a lot more money.” He also mentioned, “I’m thinking about turning eBay into something worth hundreds of billions of dollars.” This ambition aligns with GameStop’s strategy to strengthen its position in the retail sector.
Cohen told the Journal he is prepared to take the offer directly to shareholders in a proxy fight if necessary. Under the proposed deal, he would become the chief executive of the new firm and would not receive any salary or bonuses.
However, it remains unclear whether eBay’s board will view GameStop as a credible acquirer. The feasibility of this bid is questioned due to the size difference between the two companies.
