Source: Fortune
Summary
GameStop Corp. is offering $125 in cash and stock per eBay Inc. share in a takeover proposal valued at approximately $56 billion. GameStop CEO Ryan Cohen revealed that the company has built a 5% stake in eBay and secured $20 billion in debt financing from TD Bank. The offer is expected to be made public, and Cohen is prepared for a potential proxy fight.
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The numbers tell one story.
GameStop’s $56 billion offer for eBay is a big bet. CEO Ryan Cohen has secured $20 billion in debt financing from TD Bank. The company has built a 5% stake in eBay. Cohen is prepared for a proxy fight. The offer values eBay at $125 per share. GameStop is willing to take the offer to shareholders if necessary.
The deal’s fate may depend on how eBay’s shareholders react to GameStop’s aggressive move.
Author: Evan Null
