GameStop offers $56 billion for eBay, struggles to explain how it'll pay for it
Amid falling revenue and store closures, GameStop wants to buy the much larger eBay.
GameStop yesterday made an unsolicited offer to buy eBay for $55.5 billion. GameStop claims that eBay 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 GameStop's physical retail locations.
"GameStop’s ~1,600 US locations give eBay a national network for authentication, intake, fulfillment, and live commerce," GameStop Chairman and CEO Ryan Cohen wrote in a letter to eBay 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.