GameStop preparing an offer to buy eBay in effort to boost market value: report
New York Post • • business
Key Points:
- GameStop is reportedly preparing a potential offer to acquire eBay as CEO Ryan Cohen aims to significantly increase GameStop's market value, according to the Wall Street Journal.
- eBay's shares rose about 10% in after-hours trading, while GameStop's shares gained 7%, reflecting market reaction to the news of the possible deal.
- GameStop has been quietly accumulating eBay shares and may submit an offer as soon as later this month, with the possibility of taking the offer directly to eBay shareholders if the company is unreceptive.
- Ryan Cohen's compensation package at GameStop is tied to ambitious goals, including increasing the company's market capitalization to $100 billion and achieving $10 billion in cumulative EBITDA.
- GameStop's stock has declined from its peak during the 2021 meme-stock rally, highlighting the challenges Cohen faces in executing a successful turnaround.
