Video game retailer’s CEO warns that unsolicited bid could turn hostile if it is rebuffed by resale site’s board

US video games retailer GameStop has offered to buy eBay for $55.5bn (£41bn) in an unsolicited bid that its boss warned could turn hostile if the proposal is rebuffed by eBay’s board.

GameStop, which has quietly accumulated a 5% stake in eBay, said it was willing to pay $125 a share, split 50-50 between cash and stock.

It is an ambitious move by the games company, which catapulted to fame during the meme-stock craze of 2021 but is worth far less than its takeover target. GameStop had a market valuation of roughly $12bn on Friday before its bid, while eBay – originally launched as a side hobby by its founder Pierre Omidyar in 1995 – is worth about $46bn.

Just what the company needs … tens of billions in more debt.

  • XLE@piefed.socialEnglish
    231·
    4 days ago

    Relevant comment from Hacker News:

    This is just a leverage buyout and it will likely result in the slow death of both parties while there is value extraction for those in control. Think Sears, Toys R US and similar.

    The CEO has a very specific deal where he gets paid significant compensation for specific valuations, which this is likely to achieve. That is value extraction at the cost of shareholders who will be on the hook for the leveraged loan and which will likely wipe them all out over time.

    • iltoroargento@startrek.website
      9·
      4 days ago

      Yeah, exactly what I was thinking. I’m just saying these fuckers are parasites and I’m in favor of bringing back the original meaning of “poison pill” for these moneyed trash bags.