GameStop proposes $55.5bn takeover of eBay

GameStop has enactment guardant an unsolicited, non-binding connection to bargain e-commerce level eBay successful a cash-and-stock transaction valued astatine astir $55.5bn, with an connection terms of $125.00 per share.

Under the proposal, the information would beryllium divided arsenic betwixt currency and GameStop communal stock.

Shareholders would beryllium fixed afloat predetermination rights regarding their preferred signifier of payment, taxable to pro-rata allocation successful the lawsuit of oversubscription.

GameStop said the connection stands astatine a 46% premium to eBay's closing terms of $85.84 connected 4 February 2026, which it identified arsenic the day it started gathering its position.

It besides said the connection reflects premiums of 27% and 36% to the 30-day and 90-day volume-weighted mean prices, respectively.

The institution disclosed a 5% economical involvement successful eBay done derivatives and nonstop beneficial ownership.

To concern the currency information of the projected deal, GameStop said it plans to usage its existing currency and liquid investments, which were astir $9.4bn arsenic of 31 January 2026, unneurotic with third-party financing.

It added that it has received a highly assured missive from TD Securities for up to $20bn.

GameStop said it has identified $2bn successful annualised outgo savings that it believes could beryllium achieved wrong 12 months of closing.

It said these would people eBay's income and selling spending of $1.2bn, merchandise improvement costs of $300m, and wide and administrative functions of $500m.

The institution besides referred to eBay's $2.4bn income and selling walk successful fiscal 2025, which it said resulted successful a nett summation from 134 cardinal to 135 million.

Based connected outgo reductions alone, GameStop said eBay's diluted net per stock from continuing operations would emergence from $4.26 to $7.79 successful the archetypal twelvemonth aft completion.

Ryan Cohen, who has led GameStop since January 2021 and owns astir 9% of the company, would go main enforcement of the combined concern if the transaction closes.

GameStop said Cohen receives nary salary, currency bonuses, oregon severance arrangements.

GameStop besides cited its fiscal show nether Cohen, stating that it moved from a nett nonaccomplishment of $381m successful fiscal 2021 to nett income of $418m successful fiscal 2025.

In addition, the institution said its astir 1,600 US retail sites could relation arsenic a nationwide web for authentication, intake, fulfilment, and unrecorded commerce for eBay.

The connection is taxable to customary closing conditions.

"GameStop proposes $55.5bn takeover of eBay" was primitively created and published by Retail Insight Network, a GlobalData owned brand.