"GameStop's offer to eBay's board comes to $125 a share, a massive premium over the stock's recent average price of around $90 a share. According to Cohen, the deal will be half cash, half stock, with up to $20 billion in financing on the table from TD Securities."
"Cohen also claims that GameStop's 1,600 stores will provide a better infrastructure for shipping logistics and authenticating seller merchandise. The result, he promises, will nearly double earnings per share and operating profit margins."
"The executive is essentially arguing like a private equity vulture that eBay has been underperforming its recent investments, and he has a plan to make the online seller platform meet its untapped potential."
GameStop has officially offered $56 billion to acquire eBay, proposing $125 per share. The deal will be financed half in cash and half in stock, with $20 billion from TD Securities. CEO Ryan Cohen plans to cut $2 billion in costs and believes GameStop's stores will enhance shipping logistics. He aims to double earnings per share and improve profit margins. GameStop's board supports the proposal, reflecting Cohen's control over the company. The acquisition targets eBay's underperformance and potential growth in collectibles.
Read at Kotaku
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