News Summary

GameStop has made an unsolicited offer to acquire eBay for $56 billion in a cash-and-stock deal. The proposal, initiated by GameStop CEO Ryan Cohen, suggests a mix of cash and stock at $125 per share. Cohen intends to cut $2 billion from eBay’s annualized costs within a year to enhance earnings per share. Despite skepticism about GameStop’s financial capacity, Cohen is ready to take the offer to eBay shareholders if the board is unresponsive. GameStop plans to utilize its physical stores for authentication and fulfillment, aiming to enhance eBay’s live-commerce capabilities. Cohen, who owns about 9% of GameStop, will not receive a salary but will be compensated based on the performance of the merged entity.