Overview
- GameStop, which disclosed a near 5% economic stake, unveiled Sunday a $125-per-share offer worth about $55.5–56 billion in a 50% cash and 50% stock mix.
- eBay confirmed it received the approach and said its directors will evaluate it with advisers, noting the proposal remains preliminary and not binding.
- To fund the cash piece, GameStop cites roughly $9.4 billion in cash and liquid investments and a TD Securities letter for up to $20 billion of debt, leaving questions about the remaining gap.
- CEO Ryan Cohen pitches about $2 billion a year in cuts at eBay and plans to use roughly 1,600 U.S. GameStop stores for product checks, order handling, and live shopping, and he says he would lead the combined company or take the offer to shareholders if rebuffed.
- Shares diverged Monday after the news, with eBay up several percent to near $110 and GameStop down, a spread to the $125 offer price that signals investor doubt given eBay’s roughly four-times larger market value.