GameStop Makes $56 Billion Unsolicited Bid for eBay, Four Times Its Own Market Cap

GameStop proposed to acquire eBay for $125 per share in a cash-and-stock deal valued at approximately $56 billion, representing a 20% premium to eBay's Friday close and a 46% premium to when GameStop began accumulating its 5% stake on February 4. GameStop, with a market cap of $11.9 billion, has secured a $20 billion debt financing letter from TD Bank and holds $9 billion in cash. CEO Ryan Cohen pledged $2 billion in annual cost reductions within 12 months and said he is prepared to take the offer directly to shareholders if eBay's board rejects it. eBay shares surged on the news while GameStop shares fell sharply.