GameStop has proposed acquiring eBay for approximately $56 billion in a cash-and-stock deal, offering $125 per share — a 20% premium over eBay’s recent closing price, Reuters reported, citing the Wall Street Journal (WSJ).
GameStop CEO Ryan Cohen stated that the company has already acquired a 5% stake in eBay, whose market value is roughly four times that of GameStop, through shares and derivatives. Moreover, he told the WSJ in an interview that he was ready to take the proposal directly to shareholders if eBay’s board rejected the offer.
Cohen argues that combining the two companies could significantly improve efficiency and profitability, including plans to cut $2 billion in annual costs within a year. He also suggested GameStop’s 1,600 U.S. stores could support eBay’s operations in areas such as fulfillment and authentication.
To finance the deal, GameStop has secured commitments for about $20 billion in debt and plans to use its $9.4 billion in cash, along with additional equity and debt financing. External investors, including sovereign wealth funds, may also be involved.
Cohen believes the merger could position the business as a stronger competitor to Amazon, the e-commerce leader in the U.S., as he plans to serve as CEO of the combined company.
