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The
national gaming retailer said that its approximately 1,600 U.S.
stores could become drop-off and shipping locations. One
proposal includes live sales broadcasts from GameStop locations
featuring eBay products.
“EBay has the second largest commerce franchise and there’s a
big opportunity to do something much larger,” Cohen said in a
CNBC interview Monday.
GameStop's bid is $125 per share in cash and stock. The equity
value of the proposed deal is $55 billion on paper.
EBay confirmed the huge bid on Monday and said that it has had
no talks with GameStop or received any outreach from the company
before it received the proposal.
The company's board, along with financial and legal advisors,
will review the offer and determine what course of action to
take, eBay said.
GameStop said that it started accumulating shares in eBay
beginning in February and currently has a 5% stake.
The company is looking to lower costs at eBay, saying that the
online seller spent $2.4 billion on sales and marketing in
fiscal 2025 while only adding 1 million net active buyers.
GameStop says it will achieve $2 billion in annualized cost cuts
within a year of the proposed transaction's closing.
Cohen, who owns about 9% of GameStop, would serve as CEO of the
combined company. He would only be compensated based on the
combined company's performance.
Cohen became CEO of GameStop in 2023. At the time the position
had become a rotating door with the company trying to survive as
streaming upended the gaming industry. GameStop became one of
the most well-known meme stocks to create a frenzy among retail
traders on Wall Street. The company’s shares took off in 2021
after a band of smaller-pocketed investors helped boost its
stock by 1,000% in two weeks.
GameStop shares have fallen since then, but are still up more
than 30% this year.
Shares of eBay jumped more than 7% in premarket trading, while
GameStop's stock declined nearly 3%.
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