GameStop has made a surprise US$55.5 billion bid to acquire eBay, in what could become one of the more unexpected tech and retail takeover attempts in recent years.
The unsolicited offer, led by GameStop CEO Ryan Cohen, values eBay at US$125 per share in a 50-50 mix of cash and GameStop stock. That represents roughly a 20% premium over eBay’s recent closing share price. Ryan has also reportedly indicated that GameStop is prepared to take the offer directly to shareholders if eBay’s board rejects the proposal, effectively turning the move into a hostile takeover bid.
Still, the deal raises plenty of questions almost immediately. GameStop’s own market capitalisation sits at around US$12 billion, far below eBay’s roughly US$46 billion valuation. That mismatch has already led to scepticism from analysts and investors questioning how GameStop plans to finance such a massive acquisition. According to MarketWatch, the retail company is seeking to bridge that gap through a mixture of debt financing, stock issuance and external investors, with TD Securities said to have already committed up to US$20 billion in financing support.
