GameStop CEO Makes $56B Unsolicited Bid for eBay

GameStop Chief Executive Ryan Cohen has made an unsolicited offer to acquire eBay Inc for approximately US$56 billion (S$71 billion), according to a Wall Street Journal report published on May 3. Cohen disclosed that GameStop has already built a roughly 5 percent stake in eBay and is offering US$125 per share in a combination of cash and stock, representing a premium of about 20 percent over eBay's last closing price on May 1. Reuters could not immediately independently verify the report. If eBay's board of directors is not receptive to the offer, Cohen has indicated he is prepared to run a proxy fight and take the proposal directly to shareholders, the WSJ reported. Both GameStop, based in Grapevine, Texas, and eBay did not immediately respond to requests for comment from Reuters. The companies are expected to disclose further details about the potential transaction later on May 3. The potential acquisition comes as GameStop, best known as a video game retailer, has been working to transform its business model in recent years. Cohen, who co-founded pet food company Chewy, became a key activist investor in GameStop during the 2021 "meme stock" phenomenon that briefly propelled the company's shares to extraordinary heights driven by retail investors coordinating on social media. The unsolicited approach to eBay suggests Cohen is seeking to expand GameStop's footprint in the broader e-commerce marketplace, though experts note that a deal of this scale would face significant regulatory scrutiny and financing challenges.