Overview
- GameStop, which unveiled the nonbinding bid Sunday, offered $125 per share for eBay in a mix of 50% cash and 50% GameStop stock.
- The company disclosed about a 5% stake in eBay and said it has $9.4 billion in cash plus a “highly confident” TD Securities letter for roughly $20 billion in debt.
- eBay confirmed Monday that its board and advisers are reviewing the unsolicited proposal and told shareholders to take no action for now.
- Markets signaled doubt Monday as eBay rose to about $109, below the $125 offer, and GameStop fell after Ryan Cohen gave few funding details on CNBC and said he could issue more stock.
- Cohen said he is ready to go directly to shareholders in a proxy fight and claimed about $2 billion in annual cost cuts within a year by trimming eBay’s spending and using GameStop’s 1,600 stores for intake, authentication, fulfillment, and live commerce.