AcquisitionsMay 4, 2026, 07:07 AM
GameStop proposes to acquire eBay for $55.5B at $125 per share
AI Summary
GameStop Corp. has submitted a non-binding proposal to acquire all outstanding shares of eBay Inc. for approximately $55.5 billion, offering $125.00 per share in a 50% cash and 50% GameStop common stock mix. This represents a 46% premium to eBay's unaffected closing price on February 4, 2026. GameStop, which has accumulated a 5% economic stake in eBay, plans to achieve $2 billion in annualized cost reductions within twelve months of closing, projecting eBay's diluted GAAP EPS to increase from $4.26 to $7.79 in year one. Ryan Cohen, GameStop's Chairman & CEO, would lead the combined company without salary or cash bonuses, compensated solely on performance.
Key Highlights
- GameStop proposed to acquire 100% of eBay Inc. for $125.00 per share.
- The aggregate undiluted equity value of the proposal is approximately $55.5 billion.
- The offer represents a 46% premium to eBay's unaffected closing price on February 4, 2026.
- Consideration mix is 50% cash and 50% GameStop common stock, with shareholder election rights.
- GameStop has accumulated a 5% economic stake in eBay through derivatives and common stock.
- GameStop expects $2 billion in annualized cost reductions within 12 months, increasing eBay's EPS from $4.26 to $7.79.
- Cash consideration to be funded from GameStop's ~$9.4 billion cash and liquid investments and up to $20 billion in debt financing.
- Ryan Cohen will serve as CEO of the combined company, compensated solely on performance.