GameStop makes $55.5bn takeover offer for eBay
By
Osmond Chia
27d ago· 2 min readenNews
55/100
Doughy
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Sketches a bagel but doesn't bake it through.
Score55TypenewsSentimentneutral
Summary
GameStop, the video game retailer with an $11.9bn market valuation, has made a $55.5bn takeover offer for eBay. Under the proposal, GameStop boss Ryan Cohen would become CEO of the combined company and receive no salary or bonuses, being compensated solely based on performance. GameStop has secured a commitment from TD Securities for approximately $20bn in debt financing. The proposed cost cuts would primarily target eBay's sales and marketing division, which GameStop claims has failed to grow users despite eBay's strong brand recognition. Cohen sees potential to transform eBay into a much bigger rival to Amazon.
Key quotes
· 3 pulledCohen would become the chief executive of the new firm and receive no salary or bonuses, being 'compensated solely based on the performance of the combined company'
GameStop said it has a commitment letter from TD Securities to provide around $20bn in debt to help finance the deal
The majority of the proposed cost cuts would be in eBay's sales and marketing division, which GameStop said had failed to attract more users to a 'marketplace with near-universal brand recognition'
GameStop's boss Ryan Cohen says he sees potential to make eBay a much bigger rival to Amazon.
