GameStop makes $55.5bn takeover offer for eBay

GameStop has made a $55.5bn (£40.9bn) unsolicited offer to take over e-commerce firm eBay, the video game retail chain said on Sunday.

The cash and stock offer values eBay at $125 a share, $20 more than the shares were valued at the close of New York trading on Friday, GameStop said in a statement.

In a letter to eBay, GameStops chief executive Ryan Cohen said he planned to make $2bn of cost savings at the firm within a year of the deal being completed.

The BBC has contacted eBay for comment.

GameStop said Cohen would be the chief executive of the combined company.

He would receive no salary, no cash bonuses, and no golden parachute and be compensated solely based on the performance of the combined company.

GameStop, which currently has a stock market valuation of around $11.9bn, said it has a commitment letter from TD Securities to provide around $20bn in debt to help finance the deal.

Shares in eBay jumped by more than 13% in after-hours trading when news of the potential offer emerged on Friday.

GameStop runs more than 2,000 stores worldwide, though many have closed as gamers increasingly shifted towards digital downloads.

Cohen, who became the GameStop boss in 2023, has criticised its slow shift into e-commerce.