Overview
- GameStop, which unveiled the offer Monday, proposed $125 per share for eBay in a deal split 50% cash and 50% GameStop stock.
- eBay confirmed it received the proposal and said its board will evaluate it with advisers.
- GameStop disclosed an economic stake of about 5% in eBay and cited a TD Securities letter for up to $20 billion in debt plus roughly $9.4 billion in cash and liquid investments, leaving a funding gap that analysts flagged.
- Investors reacted warily as eBay shares rose between about 4.5% and 9% and GameStop fell roughly 6% to 10%, signaling doubts the deal will close at the offered price.
- CEO Ryan Cohen said he would take the bid directly to shareholders if rebuffed and pitched $2 billion in annual cost cuts at eBay and use of about 1,600 U.S. GameStop stores for logistics and authentication.