Texas [US], May 4 (ANI): US gaming retailer company GameStop Corp. has submitted a non-binding proposal to acquire 100 per cent of ebay Inc. at USD 125.00 per share in a mix of cash and stock, according to an official statement released by the company.

The offer represents a 46 per cent premium to ebay's unaffected closing price on February 4, 2026, the day GameStop began accumulating its position in the company. GameStop has built a 5 per cent economic stake in ebay through derivatives and ownership of common stock.

The company stated that the proposed deal values ebay at an aggregate undiluted equity value of approximately USD 55.5 billion. The offer also reflects a 27 per cent premium to the 30-day volume-weighted average price (VWAP) and a 36 per cent premium to the 90-day VWAP.

It said 'The proposed offer is USD 125.00 per share, comprising 50 per cent cash and 50 per cent GameStop common stock, with full shareholder election rights as to consideration type and pro-rata allocation'.

The cash portion of the deal is expected to be funded through a combination of GameStop's existing cash and liquid investments, which stood at around USD 9.4 billion as of January 31, 2026, and third-party financing.

The company said it has received a highly confident letter from TD Securities for up to USD 20 billion in acquisition financing.

GameStop Corp. is a US-based retailer best known for selling video games, gaming consoles, and related products through its stores and online platforms.

On the other hand, ebay Inc. is a major US e-commerce company that operates an online marketplace where individuals and businesses can buy and sell a wide range of products, from electronics and fashion to collectibles and second-hand goods. It is one of the earliest global online marketplaces and has a strong presence across multiple countries.

GameStop also outlined plans to deliver USD 2 billion in annualised cost reductions within twelve months of closing. This includes approximately USD 1.2 billion from Sales & Marketing, USD 300 million from Product Development, and USD 500 million from General & Administrative expenses.

The company said that based on these cost reductions alone, ebay's diluted GAAP earnings per share from continuing operations could increase from USD 4.26 to 7.79 in the first year.

The proposal also highlighted operational synergies, noting that GameStop's network of around 1,600 retail locations in the United States could support ebay's operations through authentication, intake, fulfillment, and live commerce.

If the transaction is completed, Ryan Cohen will serve as Chief Executive Officer of the combined company.

Cohen has led GameStop since January 2021. During this period, the company moved from a USD 381 million net loss in fiscal 2021 to USD 418 million net income in fiscal 2025, reduced SG&A expenses by about USD 800 million, or 47 per cent, and retired its legacy debt. The company also raised USD 4.2 billion of long-term debt at a 0 per cent coupon.

Cohen currently owns around 9 per cent of GameStop and does not receive a salary, cash bonuses, or a golden parachute, with his compensation tied solely to the performance of the combined company.

The proposed transaction remains subject to customary closing conditions and regulatory approvals. (ANI)