GameStop Launches $56-B Bid to Acquire eBay

GameStop has proposed acquiring eBay in a deal valued at approximately $56 billion, according to a Reuters report.

GameStop has already accumulated a 5% stake in eBay through shares and derivatives. (Photo: Will Buckner Flickr)

CEO Ryan Cohen said the company is prepared to take the offer directly to shareholders if eBay’s board does not engage. The proposal includes a $125-per-share offer, structured as a 50-50 mix of cash and stock, representing a roughly 20% premium over eBay’s closing price on Friday.

The move marks an ambitious attempt by GameStop, whose market capitalization is significantly smaller than eBay’s.

Cohen said GameStop has already accumulated a 5% stake in eBay through shares and derivatives. The unsolicited offer was first reported by The Wall Street Journal.