By Arlenys Tabare
The American retail chain specializing in video games, GameStop, announced this week a new offer of $55.5 billion dollars for the purchase of the auction and e-commerce website, eBay.
According to details of the acquisition proposal, the company led by Ryan Cohen would be offering $125 per eBay share in cash. After he claimed that he achieved approval from TD Bank for the $20 billion financing. “It will be half cash, half stock, but the details are on our website,” Cohen told CNBC.
For its part, after the announcement of the new offer, which has been classified as hostile, eBay declared that “will carefully review and consider the unsolicited offer to determine the course of action that it believes is in the best interests of the company and all eBay shareholders”; However, by the close of trading on Monday, its shares had already skyrocketed 5% to $109.
GameStop already has a 5% stake in eBay, and according to Cohen, with this offer the e-commerce platform “should and will be worth a lot more money.”“I’m thinking about turning eBay into something worth hundreds of billions of dollars,” he declared, while saying that it will become a great competitor to Amazon.
Furthermore, Cohen added that, in a vision of combined companies, in the future “there will be some leverage on the balance sheet to make the acquisition possible, but it will also generate much more income than today because it will operate much more efficiently”, he assured.
Currently, GameStop, founded in 1984 in Grapevine, Texas, in its more than 40 years has a market capitalization of approximately $12 billion, while eBay, founded in 1995 and currently led by Devin Wenig, is valued at approximately $49 billion.
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