Grapevine-based GameStop makes $55.5B offer for eBay

GameStop, which is headquartered at 625 Westport Parkway in Grapevine, has made a nonbinding offer to acquire California-based eBay for nearly $56 billion, according to a news release.

The offer worth $55.5 billion was submitted May 3, and it values eBay at $125 per share. If the sale closed, GameStop would acquire all of eBay using 50% cash and 50% stock, per the news release.

The details

According to a May 4 news release, eBay confirmed receiving the offer from GameStop. The release states eBay’s board of directors will review the proposal in consultation with legal and financial advisers.

GameStop has a 5% economic stake in eBay through derivatives and beneficial ownership of common stock.

To finance the 50% cash portion of the acquisition, GameStop plans to use around $9.4 billion in cash and liquid investments along with $20 billion from TD Securities, according to the news release.

What else?

If the acquisition goes through, Ryan Cohen, GameStop’s CEO, plans to serve in the same role over the combined company. Cohen, who owns about 9% of GameStop, became the company's CEO in 2021.