US Game Retailer GameStop Plans to Acquire All Shares of eBay

Ebrun Exclusive: May 6th news. According to foreign media reports, US video game retailer GameStop plans to acquire eBay at a price of $125 per share. eBay's current total undiluted equity value is approximately $55.5 billion. It is reported that GameStop plans to pay half in cash and half in stock, which includes up to $20 billion in committed financing from TD Securities. Additionally, GameStop's CEO, Ryan Cohen, will become the CEO of the merged company.

It is reported that GameStop's current market capitalization is $11.9 billion, while eBay's is $46.2 billion. Following the announcement, GameStop's stock price fell by 10%, while eBay's stock price rose by 5%.

In fact, since February 4th of this year, GameStop has been gradually increasing its stake in eBay and currently holds a 5% stake. The current offer represents a 46% premium over eBay's closing price on February 4th.

In a letter to eBay's Chairman, GameStop CEO Ryan Cohen stated the company would cut costs at eBay and improve its profitability. He believes combining GameStop's physical stores with eBay's online business will bring numerous benefits. "With approximately 1,600 stores in the US, GameStop provides eBay with a nationwide network for authentication, receiving, shipping, and online transactions."

Furthermore, in an interview with foreign media, Cohen stated eBay "has the potential to be a formidable competitor to Amazon." He believes eBay should invest more in the live commerce sector, enabling brands to sell directly to consumers through real-time live streams.

Public information shows that GameStop is a US-based brick-and-mortar video game retail chain, primarily selling video games, consoles, and related products. At its peak, it operated thousands of stores globally. As games increasingly shifted online, reducing the need for physical discs, its traditional business model faced continuous pressure, and the company was once on the brink of bankruptcy. Subsequently, Cohen led a company transformation, cutting stores, reducing costs, and expanding into retro games and collectibles. It currently operates about 1,600 stores in the US.