SouthernWorldwide.com – GameStop has made a substantial offer to acquire eBay for a staggering $55.5 billion. This ambitious move by the video game retailer aims to gain control of the long-standing online marketplace, a platform known for facilitating the buying and selling of a diverse range of items, including collectibles and apparel.
The proposed takeover, detailed in a proposal, outlines GameStop’s offer of $125 per share for eBay, to be paid in a combination of cash and stock. Notably, GameStop, headquartered in Grapevine, Texas, already holds a 5% stake in eBay.
In a letter addressed to eBay’s chairman of the board, GameStop CEO Ryan Cohen disclosed that the company has secured a commitment from TD Securities to provide $20 billion, intended to help finance the acquisition.
eBay acknowledged the unsolicited proposal on Monday, stating that it will “carefully review and consider the unsolicited proposal to determine the course of action that it believes is in the best interests of the company and all eBay shareholders.”
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The Wall Street Journal, which first broke the news of GameStop’s interest in eBay, reported that Cohen is prepared to pursue a hostile bid if eBay does not accept the current offer. Cohen expressed his belief that eBay could emerge as a “legit competitor to Amazon,” according to his comments to the Journal.
“EBay should be worth — and will be worth — a lot more money,” Cohen stated to the publication. “I’m thinking about turning eBay into something worth hundreds of billions of dollars.”
GameStop appointed Cohen as its CEO in 2023 as part of a strategic effort to revitalize its struggling retail business. The company had been losing market share and facing intense competition from online game sellers.
Prior to his leadership at GameStop, Cohen, a billionaire entrepreneur who founded the pet food company Chewy, was the largest individual shareholder in GameStop.
Currently, GameStop’s market capitalization is close to $12 billion, significantly smaller than eBay, which is valued at approximately $49 billion. GameStop gained considerable attention in 2021 when retail investors, coordinating on Reddit, began purchasing large quantities of GameStop shares, causing its stock price to surge by over 2,000%.
This coordinated effort also boosted the stock prices of other companies categorized as “meme stocks.”
In early trading on Monday, GameStop shares experienced a decline of 2%, settling at $26. Conversely, eBay’s stock saw an increase of 5%, trading at $109.72.
