GameStop presents a $56 billion offer to buy eBay

GameStop tries the surprise move on eBay. The CEO Ryan Cohen presented aunsolicited offer of approximately 56 billion dollars to acquire the e-commerce group, with the aim of strengthening its competitive positioning against Amazon.

According to what was reported to Wall Street JournalGameStop has accumulated a stake of approximately 5% in eBay and offers $125 per share between cash and securities. Cohen said he sees significant growth potential for eBay, to a valuation in the hundreds of billions of dollars.

The GameStop operation

To support the operation, the WSJ writes, GameStop has obtained a letter of commitment from TD Bank for financing up to 20 billion dollars. The offer, made up of half cash and half GameStop shares, was formalized in a letter addressed to eBay’s president Paul Pressler. If the board fails to open, Cohen said he is ready to address the shareholders directly.

Analysts’ skepticism

The operation, underlines the newspaper, however presents significant critical issues: eBay is worth approximately 46 billion dollarswhile GameStop has a capitalization around 12 billion and about 9 billion in liquidity. It is not yet clear how the entire acquisition would be financed, although the involvement of external investors, including, is not ruled out sovereign funds. Some analysts express skepticism about the feasibility of the operation, underlining how eBay’s recovery path is focused on collecting e market nichesis already producing positive results.

Synergies and development levers

Cohen focuses on synergies between the two companies, in particular on the integration between the physical network of GameStop stores and the eBay online platform, for example for authentication e withdrawal of products. Among the development levers indicated also the live commerce and greater use ofartificial intelligence.

eBay’s quarterly results

If the deal goes through, Cohen has indicated he would take on the role ceo of the combined company, with a remuneration linked exclusively to performance. eBay recently reported solid quarterly resultswith an increase in the gross transaction value of 18% on an annual basis, and has initiated a plan of cost reduction which includes cutting approximately the 6,5% of the global workforce.