Overview
- GameStop, which unveiled the unsolicited $125‑per‑share bid Sunday, proposed a roughly 50/50 cash‑and‑stock deal that values eBay at about $55.5 to $56 billion and offers about a 20% premium to Friday’s close.
- The company disclosed a roughly 5% stake in eBay, about $9 to $9.4 billion in cash on hand, and a TD Bank commitment letter for up to $20 billion in debt financing to back the offer.
- CEO Ryan Cohen said he is ready to run a proxy fight and take the proposal directly to eBay investors if the board resists, and he said he would serve as CEO of the combined company if the deal closes.
- GameStop projected about $2 billion in annual cost cuts within 12 months of closing and pitched its 1,600 U.S. stores as a network for authentication, item intake, fulfillment, and live shopping.
- eBay shares jumped roughly 10% to 14% after the news while GameStop rose 4% to 7%, as analysts highlighted the unusual size gap and the heavy financing, dilution, and regulatory risks this bid may face.