Overview
- GameStop, which unveiled a $56 billion cash-and-stock bid for eBay on Sunday, offered $125 per share and said CEO Ryan Cohen would run the combined company.
- Cohen said on a podcast he would cut eBay jobs if he takes control, arguing the company’s roughly 11,500 employees “don’t make sense.”
- GameStop cites $9.4 billion in cash and a $20 billion credit commitment from TD Securities, with the rest of the financing unclear and reports pointing to potential outside backers from the Middle East.
- eBay confirmed its board and a financial adviser are reviewing the offer, while Cohen, who has built about a 5% stake, warned he may take the bid directly to shareholders if management resists.
- Investors drove eBay shares up about 12% in after-hours trading on the reports, as GameStop touted $2 billion in first-year cost cuts and the use of its 1,600 U.S. stores for authentication, drop-off, shipping and live commerce.