GameStop targets eBay with unsolicited $56bn acquisition offer
Summary
GameStop made an unsolicited $56 billion offer to buy eBay, a much larger company, to improve its profits and expand its physical presence. GameStop plans to fund the deal with cash, stock, and debt, aiming to cut costs and use its stores to help eBay compete with Amazon.Key Facts
- GameStop offered $56 billion to acquire eBay, whose market value is nearly four times higher.
- The deal would be half cash and half stock, including $9 billion in cash and $4.2 billion in debt.
- GameStop has already bought a 5% stake in eBay and has potential $20 billion financing lined up.
- GameStop CEO Ryan Cohen said he can cut costs and use GameStop’s 1,600 US stores to boost eBay’s business.
- eBay spent $2.4 billion on sales and marketing in 2025 but only gained 1 million new active buyers.
- Cohen would be CEO of the combined company and paid based on company performance.
- Experts say combining the companies is difficult because they have different business models.
- The deal, if funded by borrowing, would be the largest leveraged buyout ever, surpassing a $55 billion deal.
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