VERIFIEDBy Xavier Rivera· ·1 min read
GameStop CEO Pitches $56B eBay Buyout
GameStop CEO Ryan Cohen proposes a $56 billion buyout of eBay at a 20% premium. The bold move aligns with his vision to grow GameStop to $100 billion amid huge personal incentives.
Source:GameSpot
TL;DRAI · 60 sec read
GameStop CEO Ryan Cohen proposes acquiring eBay for $56 billion, offering $125 per share in cash and stock—a 20% premium over Friday's close.
In comments to The Wall Street Journal, Cohen asserts, "There is nobody who is more qualified, based on my experience, to run the eBay business." He predicts eBay deserves far higher value and envisions transforming it into a hundreds-of-billions-dollar powerhouse.
GameStop has a $12 billion market cap, versus eBay's $46 billion. Cohen reportedly has lined up $20 billion in debt financing from TD Bank. eBay has offered no response yet, leaving the proposal's odds unclear.
The Wall Street Journal first reported Cohen's interest Friday, lifting after-hours shares for both stocks. Prices climbed further after the May 3 report.
The bid echoes Cohen's January vow to buy a company and vault GameStop to $100 billion valuation—"genius or totally, totally foolish." His compensation package promises up to $35 billion upon hitting targets like $100 billion market value.
Cohen's leadership stirs controversy, featuring layoffs, store closures, and the sale of Game Informer magazine.
In comments to The Wall Street Journal, Cohen asserts, "There is nobody who is more qualified, based on my experience, to run the eBay business." He predicts eBay deserves far higher value and envisions transforming it into a hundreds-of-billions-dollar powerhouse.
GameStop has a $12 billion market cap, versus eBay's $46 billion. Cohen reportedly has lined up $20 billion in debt financing from TD Bank. eBay has offered no response yet, leaving the proposal's odds unclear.
The Wall Street Journal first reported Cohen's interest Friday, lifting after-hours shares for both stocks. Prices climbed further after the May 3 report.
The bid echoes Cohen's January vow to buy a company and vault GameStop to $100 billion valuation—"genius or totally, totally foolish." His compensation package promises up to $35 billion upon hitting targets like $100 billion market value.
Cohen's leadership stirs controversy, featuring layoffs, store closures, and the sale of Game Informer magazine.
HELP US IMPROVE
Reader-supported
The Circuitry is a passion project I've always wanted to build, and I love the work behind it.
Running it costs real money. APIs, hosting, time. To keep improving the site and growing this into something useful for everyone, those costs have to be covered.
Any contribution is appreciated. If not, no pressure. Thanks for reading.