Meme stock GameStop makes $56 billion bid for eBay in bid to rival Amazon
CNBC • • business
Key Points:
- GameStop has made an unsolicited, non-binding offer to acquire eBay for $125 per share in a cash-and-stock deal, valuing eBay at approximately $55.5 billion, a 20% premium over eBay's recent closing price.
- The offer consists of an equal split between cash and GameStop common stock, with GameStop having built a roughly 5% stake in eBay and secured up to $20 billion in debt financing to support the deal.
- GameStop CEO Ryan Cohen aims to transform eBay into a stronger competitor to Amazon, projecting $2 billion in annual cost cuts and significant earnings growth within the first year post-acquisition.
- The proposal faces uncertainty due to the size disparity between the companies—GameStop's market cap is around $12 billion versus eBay's $46 billion—and requires approval from eBay's board, regulators, and shareholders.
- Cohen is prepared to pursue a proxy fight to win shareholder support, and if successful, he is expected to become CEO of the combined entity, leveraging GameStop's retail stores as physical infrastructure for eBay's marketplace.
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