Overview
- The video game retailer offered $125 per share in a half-cash, half-stock deal on Sunday, valuing eBay at about $55.5–$56 billion.
- eBay, which confirmed Monday it received the unsolicited offer, said its board will review the proposal with advisors and noted there had been no prior talks.
- GameStop says it holds roughly a 5% stake in eBay, has about $9.4 billion in cash, and secured a TD Securities letter for up to $20 billion in debt financing.
- Skepticism over funding pushed eBay shares to about $110 on Monday, below the offer price, while GameStop fell after CEO Ryan Cohen said issuing new stock was possible.
- Cohen pitched $2 billion in first-year cost cuts and use of about 1,600 stores for authentication, intake, fulfillment, and live commerce, and he signaled a proxy fight if eBay resists.