GameStop targets eBay in $55.5B deal as Cohen takes aim
GameStop has submitted an unsolicited, non-binding proposal to acquire eBay for $125 per share. GameStop offered $125 per eBay share, valuing the unsolicited takeover proposal at about $55.5 billion.Ryan Cohen would lead the combined company if GameStops cash-and-stock acquisition proposal for eBay succeeds.GameStop says $2 billion in yearly cost cuts could come within twelve months of closing. The proposed deal values eBay at about $55.5 billion on an undiluted equity basis. Meanwhile, the offer would use 50% cash and 50% GameStop stock. GameStop said the price represents a 46% premium to eBays unaffected closing price on February 4, when it began building its position. GameStop also disclosed a 5% economic stake in eBay through derivatives and common stock ownership. The company said it planned to file a Schedule 13D and Hart-Scott-Rodino notification. The proposal would place Ryan Cohen as chief executive of the combined company after closing. GameStop said Cohen owns about 9% of the company and receives no salary, cash bonuses, or golden parachute. Cost cuts form key part of takeover plan GameStop said it could deliver about $2 billion in yearly cost cuts within twelve months of closing. It pointed to sales and marketing, product development, and administrative expenses as target areas. The company