GameStop Makes $55.5 Billion Unsolicited Bid for eBay

Overview

• GameStop offered $125 per share for eBay in an unsolicited proposal on Sunday, splitting payment between cash and stock.
• To fund the deal, GameStop cited a binding TD Bank letter for about $20 billion in debt and reported roughly $9.4 billion in cash on hand as of January 31.
• GameStop said it quietly built an eBay stake of about 5% since February 4, and Ryan Cohen warned he will take the case to shareholders if the board resists.
• Ryan Cohen would run the combined company and projects about $2 billion in annual cost cuts within a year of closing, with an immediate boost to eBay’s earnings per share.
• eBay has not responded publicly to the proposal, and a June shareholder meeting looms as a focal point even though the deadline for new resolutions has passed.