Shares of eBay take off on a $56 billion buyout bid from GameStop's Ryan Cohen
AP News • • general
Key Points:
- GameStop, led by Ryan Cohen, has made a $56 billion takeover bid for eBay, aiming to use eBay as a platform to challenge Amazon in online retail.
- The proposal includes transforming GameStop’s 1,600 U.S. stores into drop-off and shipping points and hosting live sales broadcasts featuring eBay products.
- GameStop’s bid values eBay at $125 per share in cash and stock, with GameStop currently holding a 5% stake in eBay and planning significant cost reductions of $2 billion annually.
- eBay confirmed receipt of the offer but stated it had no prior discussions with GameStop; its board and advisors will review the proposal.
- Ryan Cohen, who owns about 9% of GameStop and became CEO in 2023, would lead the combined company, with compensation tied to performance; eBay shares rose over 7% premarket, while GameStop shares fell nearly 3%.
