GameStop Plans 'Minnow Swallowing Whale' Acquisition of eBay, Challenging M&A Norms

Central News Agency (New York, May 3rd) – The "Wall Street Journal" today cited an interview with GameStop CEO Ryan Cohen, reporting that GameStop has submitted an unsolicited acquisition proposal to the US e-commerce platform eBay, valued at approximately $56 billion.

Reuters reported that Cohen told the "Wall Street Journal" that GameStop already holds about 5% of eBay's shares and has offered an acquisition price of $125 per share in cash and stock. This price represents a premium of approximately 20% over eBay's closing price on the 1st.

The report pointed out that Cohen stated if eBay does not accept this offer, he is prepared to launch a proxy battle, directly presenting the acquisition to shareholders.

Cohen bluntly stated in the "Wall Street Journal" interview: "eBay should and will be worth more money. My goal is to build eBay into a multi-hundred-billion-dollar enterprise."

Cohen stated that he has obtained a commitment letter from TD Bank for approximately $20 billion in debt financing.

According to sources cited in the report, GameStop may seek support from external investors, including Middle Eastern sovereign wealth funds, to help finance the acquisition.

According to Reuters' estimates, GameStop's current market capitalization is nearly $12 billion, while eBay's market capitalization is approximately $46 billion.

TD Bank, GameStop, and eBay did not immediately respond to Reuters' request for comment.

This potential transaction would upend conventional M&A practices. It is extremely rare for a public company to acquire a target nearly four times its own size. Such transactions usually rely on substantial debt, issuance of new shares, or a combination of both, with the hope that the merged company's future profitability can cover the acquisition costs. (Compiled by Chen Yu-ting) 1150504