Gamestop wants to buy eBay for $56 billion

Gamestop gave a bid of on Sunday $125 per share known. This corresponds to an additional charge of 20 percent to Friday’s closing price, emphasized Cohen. Gamestop also already holds a share of around 5 percent on Ebay. eBay was the last to go public 46 Mrd. Dollar worth, Gamestop just 11 Mrd. Dollar.

Ebay completely surprised

It was said that Ebay was completely surprised by the takeover offer. So far there has been no statement from the trading platform. How Gamestop plans to finance the purchase is unclear. Gamestop only has 9,4 Mrd. Dollar of liquid assets.

Cohen referred to a commitment for a loan from 20 Mrd. Dollar. It is rumored that the rest could come from a sovereign wealth fund from the Middle East. There are also doubts about the usefulness of the takeover. Market observers wanted a “PR staging“Don’t rule it out.

The video game retailer is struggling with online sales and recently had to close numerous branches. Ebay, on the other hand, was able to gain ground with collectibles, car spare parts and used fashion items.

Meme stock

Gamestop became known as a so-called meme stock in 2021 made headlines at the beginning of the corona pandemic because amateur online traders drove up the share price despite Wall Street analysts’ doubts about the business model. Gamestop fans and other private speculators met primarily on the online platform Reddit to bet against hedge fundswho had bet on falling prices. By driving the US video game retailer’s share price to unprecedented heights, they managed to get institutional hedge funds into trouble.