GameStop offers $56 billion for eBay, struggles to explain how it'll pay for it

Game Stop yesterday made an unsolicited offer to buy e Bay for $55.5 billion. Game Stop claims that e Bay has underperformed and spends too much on sales and marketing and argues that it would become a stronger company if it cuts costs and is combined with Game Stop's physical retail locations. "Game Stop’s ~1,600 US locations give e Bay a national network for authentication, intake, fulfillment, and live commerce," Game Stop Chairman and CEO Ryan Cohen wrote in a letter to e Bay Chairman Paul Pressler. eBay's market capitalization is over four times larger than GameStop's. GameStop faces skepticism about the viability of its offer but says it will obtain debt financing and pay with a mix of cash and stock.Read full article Comments