"GameStop is offering $125 per share in cash and stock for eBay, which represents a roughly 20% premium to eBay's closing price. If eBay's board resists, Cohen is prepared to run a proxy fight and take the offer directly to shareholders."
"Cohen has warned that the move will be 'ultimately genius or totally, totally foolish.' The combined cash, market cap, existing 5% eBay stake, and $20 billion debt financing commitment from TD Bank would not amount to the $56 billion needed for the acquisition."
"eBay reported 135 million active buyers last quarter and Q1 2026 revenue guidance of $3.00 billion to $3.05 billion. Pairing that scale with GameStop's collectibles category, now 33.1% of Q4 net sales, is the bull case Cohen is selling."
GameStop is proposing a $56 billion acquisition of eBay, offering $125 per share, which is a 20% premium. CEO Ryan Cohen has built a 5% stake in eBay and is prepared for a proxy fight if necessary. The financing plan includes half cash and half stock, but concerns arise regarding the total funding needed. The acquisition could benefit both companies due to overlapping customer bases, with eBay's marketplace complementing GameStop's collectibles sales.
Read at 24/7 Wall St.
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