In a stunning move that has sent shockwaves through the financial world, video game retailer GameStop has made a $55.5 billion unsolicited takeover offer for e-commerce giant eBay. The cash-and-stock deal, announced on Sunday, values eBay at $125 per share—a premium of $20 over Friday's closing price.
GameStop CEO Ryan Cohen, who took the helm in 2023, outlined plans in a letter to eBay to slash $2 billion in costs within a year of closing the deal. Cohen would lead the combined company, taking no salary, cash bonuses, or golden parachute, and would be compensated solely based on performance.
To finance the acquisition, GameStop said it has secured a commitment letter from TD Securities for approximately $20 billion in debt. The news of the potential offer caused eBay shares to surge over 13% in after-hours trading on Friday.
GameStop, currently valued at around $11.9 billion, operates more than 2,000 stores worldwide, though many have closed as gamers shift to digital downloads. Cohen has been critical of the company's slow pivot to e-commerce.
The BBC has contacted eBay for comment.