GameStop offers to buy eBay for $56 billion to create 'legit competitor to Amazon'
The story
Video game retailer GameStop has offered to buy eBay for 55.5 billion USD in CEO Ryan Cohen's latest bold market move.
From the source
Perhaps in an attempt to expand their Pokémon card-trading empire , video game retailer GameStop is trying to acquire e-commerce platform eBay. From surviving Covid on meme stock to banking on the Charizard Ultra Premium Collection, to potentially owning eBay — GameStop's having quite the run.
On Sunday, May 3, GameStop made an offer to buy eBay for $125.00 per share, which comes down to about $55.5 billion in total. As eBay's stock price closed at $104 USD on Friday, May 1, GameStop is offering a 20% premium per share. This whopping sum is to be paid 50% in cash and 50% in stock, as GameStop's CEO Ryan Cohen explains in an open letter to eBay's Board of Directors.
As stated by Cohen, GameStop already has a 5% economic stake in eBay. He goes on to mention that, since 2021, GameStop has gone from a $381 million net loss to $418 million net income, and should the bid be accepted, "GameStop’s ~1,600 US locations give eBay a national network for authentication, intake, fulfillment, and live commerce." Cohen proposes himself as the CEO of the combined corporations.
Who and what
Key names and topics in this story: GameStop, Amazon.
Where to follow next
- Read the full piece at www.polygon.com
- More from our Gaming coverage
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