GameStop offers $56B to buy eBay
▼ Summary
– GameStop has offered to acquire eBay for $56 billion, aiming to turn the marketplace into a competitor to Amazon.
– eBay confirmed receipt of the unsolicited proposal and stated it will review it, noting no prior discussions with GameStop.
– GameStop plans to fund the acquisition with $9.4 billion from its balance sheet and third-party financing, including up to $20 billion from TD Securities.
– The remaining funding for the acquisition has not been specified by GameStop.
– The news was reported by The Wall Street Journal and The Verge, with GameStop CEO Ryan Cohen leading the acquisition plan.
GameStop has formally proposed the acquisition of eBay for a staggering $56 billion, a move that CEO Ryan Cohen says is part of a larger strategy to turn the online marketplace into a “legit competitor to Amazon,” according to a report from The Wall Street Journal. The unsolicited offer, announced Monday, has eBay confirming it will “carefully review” the proposal, though the company noted it had “no discussions with or outreach from GameStop” prior to receiving the bid.
To finance the deal, GameStop plans to tap $9.4 billion from its own balance sheet alongside third-party funding, which includes up to $20 billion from TD Securities. The WSJ points out that the company has not yet disclosed how it intends to cover the remaining portion of the acquisition cost.
(Source: The Verge)
