GameStop has announced a $56 billion bid to acquire eBay, signaling its ambition to reshape the online marketplace into a competitor to Amazon.
The video game retailer's offer includes $125 per share, representing a 46% premium over eBay's recent stock prices.
GameStop CEO Ryan Cohen emphasized the potential for eBay to significantly increase its market value, stating, 'eBay should be worth — and will be worth — a lot more money.'
In a recent interview, Cohen expressed his vision for eBay, saying, 'I’m thinking about turning eBay into something worth hundreds of billions of dollars.'
GameStop has secured a financing commitment of approximately $20 billion from TD Bank, alongside $9.4 billion in cash reserves as of January.
Cohen noted that the acquisition could yield annual cost reductions of $2 billion within the first year, potentially increasing eBay’s earnings per share.
If eBay management rejects the bid, Cohen indicated he would reach out to shareholders directly.
The upcoming annual general meeting for eBay is set for June, although the deadline for submitting resolutions has already passed.
As of the last trading session, GameStop's market capitalization was around $11.89 billion, while eBay's stood at $46.21 billion.