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Gamestop / GME / eBay - Ryan Cohen confirmed he made a bid to buy eBay entirely - He will be CEO of the combined companies. (This post title should probably include lots off flashing light emojis and multiple exclamation marks, but that wouldve been extremely gay)
posted ago by AllMostThere ago by AllMostThere +96 / -0

Sources:

https://x.com/ryancohen/status/2051097144673665401

New WallStreetJournal article breaking down the bid: https://www.wsj.com/business/deals/gamestop-is-offering-to-buy-ebay-for-56-billion-ceo-ryan-cohen-says-fd330f5a

TL;DR: GameStop’s $56 Billion Bid for eBay

  • Unsolicited Takeover: GameStop CEO Ryan Cohen has made a massive $56 billion unsolicited offer to acquire eBay.

  • The Price Tag: The offer is set at $125 per share in a mix of cash and stock, representing a 20% premium over eBay’s recent closing price.

  • Vision for Growth: Cohen aims to transform eBay into a "legit competitor to Amazon" by merging its online platform with GameStop’s physical store infrastructure.

  • Physical Synergies: The plan involves using GameStop’s retail locations as hubs to collect and authenticate high-value items like trading cards and collectibles for eBay sellers.

  • Funding the Deal: To pay for the acquisition, GameStop plans to use $9 billion in cash and has secured a $20 billion debt commitment from TD Bank, with potential further backing from Middle Eastern sovereign-wealth funds.

  • Ready for Battle: Cohen has stated he is prepared to launch a proxy fight and take the offer directly to shareholders if eBay's board is not receptive.

  • Ambitious Scale: This is a "David vs. Goliath" move, as GameStop is valued at roughly $12 billion, while eBay was valued at $46 billion before the announcement.

  • Massive Payday: Cohen has a personal incentive of up to $35 billion in stock if he can successfully drive the company's market value to $100 billion.

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