GameStop Wants to Buy E-commerce Giant eBay

GameStop is the leading chain for physical video game distribution, a company that has been in a delicate situation for several years due to the inevitable rise of digital delivery. In 2024, its Italian stores were sold to Cidiverte S.p.A. and rebranded as Gamelife. GameStop CEO, Ryan Cohen, is attempting to implement a turnaround plan for the company that would be an understatement to call "ambitious."

Details of the eBay Offer

In an official statement, GameStop announced that it has made a proposal to acquire 100% of eBay's shares at $125 each. In total, $55.5 billion would be put on the table: the e-commerce giant is currently valued at approximately $46 billion on the market. The peculiar aspect of the matter is that GameStop is currently worth "only" $11.9 billion, much less than the entity it intends to acquire.

Of these $55.5 billion, half would be paid in cash and the other half in GameStop shares (which, as mentioned, are currently worth much less). The cash portion will be financed both by GameStop's liquidity, which currently amounts to $9.4 billion, and with the help of third parties: Canadian bank TD Securities is mentioned, which could provide a loan of up to $20 billion.

Should the operation go through, the new entity formed by GameStop and eBay would be born with significant debt, but Cohen seems to have very clear ideas: first, he would be the CEO of the new company. Second, he promises to reduce eBay's expenses by $2 billion a year and thus increase share dividends. Furthermore, the approximately 1,600 GameStop stores on American soil would effectively become eBay hubs.