GameStop 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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GameStop’s $55.5 Billion eBay Bid Puts Its Bitcoin Treasury in the Crosshairs
GameStop submitted a non-binding offer on Sunday to acquire eBay for $55.5 billion, or $125 per share in a mix of cash and stock. The offer represents a 27% premium to eBay’s 30-day volume-weighted average price and a 36% premium to its 90-day average. The company plans to fund the bid with $9.4 billion in cash and liquid investments on its balance sheet, plus up to $20 billion in debt financing supported by a commitment letter from TD Bank. Tha…
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