GameStop Makes Unsolicited Offer to Acquire eBay
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: CNBC
- Acquisition Proposal Details: GameStop has made an unsolicited offer to acquire eBay at $125 per share, valuing the deal at approximately $55.5 billion, which represents a 20% premium over eBay's Friday close of $104.07, indicating GameStop's strong interest in eBay.
- Market Reaction: eBay's shares surged by 13.4% in after-hours trading to around $118, while GameStop's shares rose about 4% to $27.6, reflecting a positive market response to the acquisition proposal.
- Financing Plan: GameStop has built a roughly 5% stake in eBay and secured a commitment letter from TD Bank for up to $20 billion in debt financing, with the remainder funded from its approximately $9.4 billion cash reserves, providing financial backing for the acquisition.
- Cost Reduction Expectations: GameStop plans to cut $2 billion in annual costs within a year, projecting eBay's earnings per share to rise from $4.26 to $7.79, demonstrating confidence in enhancing eBay's profitability.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 265.060
Low
175.00
Averages
280.01
High
325.00
Current: 265.060
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Proposal Details: GameStop has made an unsolicited offer to acquire eBay at $125 per share, valuing the deal at approximately $55.5 billion, which represents a 20% premium over eBay's Friday close of $104.07, indicating GameStop's strong interest in eBay.
- Market Reaction: eBay's shares surged by 13.4% in after-hours trading to around $118, while GameStop's shares rose about 4% to $27.6, reflecting a positive market response to the acquisition proposal.
- Financing Plan: GameStop has built a roughly 5% stake in eBay and secured a commitment letter from TD Bank for up to $20 billion in debt financing, with the remainder funded from its approximately $9.4 billion cash reserves, providing financial backing for the acquisition.
- Cost Reduction Expectations: GameStop plans to cut $2 billion in annual costs within a year, projecting eBay's earnings per share to rise from $4.26 to $7.79, demonstrating confidence in enhancing eBay's profitability.
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