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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GameStop Makes Unsolicited Offer to Acquire eBay
- 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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- Robotics Technology Potential: CEO Andy Jassy highlighted in the annual shareholder letter that robotics represents a 'step-level change' in Amazon's operations, suggesting the company could unlock multibillion-dollar business opportunities over the next decade.
- Strong Cash Flow: Amazon's operating cash flow surged by 30% year-over-year in the trailing twelve months, indicating the company's ability to create value for shareholders through AI and robotics, thereby enhancing its competitive position in the market.
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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.
See More
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- Scope of Impact: The voluntary recall affects 63,078 tins produced by its associate company Synlait Milk, with approximately 16,428 units believed to have reached consumers, although Synlait stated that production complied with all relevant standards at the time.
- Brand Risk: Analysts noted that while the recall is isolated to a2's U.S. label product, there is a risk of negative social media fallout, particularly in China, where nearly 70% of a2 Milk's total revenue in fiscal 2025 was generated.
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- Walmart's Earnings Outlook: Walmart is expected to report a 5% year-over-year sales increase to $172 billion on May 21, with nearly all growth coming from existing stores, and earnings projected to rise 8% to $0.66 per share, reflecting strong performance amid improving consumer spending.
- E-Commerce Competitive Edge: Walmart's e-commerce sales surged 24% year-over-year in Q4, significantly outpacing Amazon's 8% increase, suggesting that Walmart's rapid growth in e-commerce could pose a competitive threat to Amazon.
- TJX Companies' Steady Growth: TJX has reported sales growth in 19 of the last 20 years, with Q1 sales expected to rise 6.5% to $13.9 billion, and management noted that the availability of quality inventory remains strong, which is crucial for attracting customers.
See More
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- Walmart's E-commerce Surge: Walmart's e-commerce sales skyrocketed 24% year-over-year in Q4, significantly outpacing Amazon's 8% increase, with Q1 sales expected to grow 5% to $172 billion, showcasing its strong performance amid improving consumer spending trends.
- TJX's Consistent Growth: TJX has reported sales growth in 19 of the last 20 years, with comparable store sales rising 5% year-over-year in the latest fiscal quarter, and Q1 sales projected to increase 6.5% to $13.9 billion, reflecting its resilience and market appeal in a high-inflation environment.
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See More
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- Elevated Market Position: CEO Andy Jassy stated that if Amazon's chip business operated as a standalone entity, its annual revenue run rate would reach $50 billion, indicating its emergence as one of the top three data center chip companies globally, significantly enhancing its strategic position.
- Strong Customer Demand: Amazon currently holds over $225 billion in revenue commitments for its Trainium chips, with major customers like Anthropic and OpenAI, demonstrating robust market demand for its products and further solidifying Amazon's leadership in the AI hardware sector.
- Cost Savings Potential: The introduction of Trainium chips is expected to save Amazon tens of billions in capital expenditures while providing several basis points of operating margin advantage, driving growth in its cloud business and laying the groundwork for future investment returns.
See More
