GameStop offers to buy eBay for about $56 billion
STORY: :: eBay GameStop wants to buy eBay. The retailer said Sunday that it has offered to buy all common shares of the online marketplace for about $56 billion. Chief Executive Ryan Cohen said the offer price is $125 a share in a 50-50 mix of cash and stock. The bid represents a premium of about 20% based on eBay’s Friday close. In an interview with the Wall Street Journal, Cohen said that the move would create huge opportunities to improve earnings and cut costs. :: eBay He added that the combination “could be a legit competitor to Amazon.” If eBay is not receptive, Cohen said he was prepared to run a proxy fight and take the offer directly to shareholders. He added that he has secured a commitment letter from TD Bank for about $20 billion in debt financing. :: eBay Neither the lender nor eBay would immediately respond to Reuters requests for a comment. The proposal comes as GameStop grapples with disruptions from a shift toward online shopping and digital purchases According to Reuters calculations, the company has a market value of almost $12 billion, compared to $46 billion for eBay. That means the potential deal would upend the usual merger and acquisition playbook, as it’s rare for a public company to target one nearly four times its size.