GameStop makes a $56 billion bid to acquire eBay

At GameStop Make an offer To acquire eBay for $56 billion, which comes as part of GameStop CEO Ryan Cohen’s plan to turn the online marketplace into a “legitimate competitor to Amazon,” he says. The Wall Street Journal. in Announcement on MondayeBay says it will “carefully review” the unsolicited proposal, adding that it “did not have any discussions with or communicate with GameStop” before receiving the offer.

GameStop says it will finance the acquisition using $9.4 billion from the company’s balance sheet and third-party financing, including up to $20 billion from TD Securities. As indicated by the Wall Street JournalThe company did not say how it would finance the rest of the acquisition, but sources told the outlet that “Cohen could tap outside investors, such as Middle Eastern sovereign wealth funds, to support the deal.” the Wall Street Journal Reports indicate that Cohen is ready to launch a proxy fight to take over eBay if the company does not accept its offer.

Cohen has a very big incentive to grow GameStop, which he has in his time The epicenter of memstock madness in 2021. Under him New compensation packageCohen could make up to $35 billion if the company achieves certain financial goals, such as reaching a market value of $100 billion, according to The Guardian. Wall Street Journal. “eBay should be worth — and will be worth — a lot of money,” Cohen told The New York Times. Wall Street Journal. “I’m thinking about turning eBay into something worth hundreds of billions of dollars.”