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The latest chapter in video game retailer GameStop’s tumultuous story is unfolding, as the company has announced plans to buy eBay for $56 billion.
CEO Ryan Cohen told The Wall Street Journal that he plans to offer $125 per share in cash and stock to buy eBay, and that’s about a 20% premium over where eBay’s shares closed on Friday. “There is nobody who is more qualified, based on my experience, to run the eBay business,” he said.
“eBay should be worth–and will be worth–a lot more money. I’m thinking about turning eBay into something worth hundreds of billions of dollars,” he said.
GameStop, as a company, has a market cap of around $12 billion, compared to eBay’s $46 billion. Cohen said he has $20 billion in debt financing from TD Bank to help get the deal done for eBay. There is no word on how eBay is feeling about selling itself, and it’s possible no deal materializes.
This shocking news first came to light on Friday, when WSJ reported that Cohen was eyeing a deal for eBay–this report helped drive up the prices of eBay and GameStop shares after the market had closed for the week. The share prices for both companies rose
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