GameStop Corp. is proposing to buy eBay Inc. in a takeover bid valued at approximately $56 billion. Chief Executive Officer Ryan Cohen stated that the company is offering $125 per share in cash and stock.
The offer represents a roughly 20% premium to eBay's closing price on Friday. GameStop has already established a roughly 5% stake in eBay, a company that is roughly four times larger than GameStop.
Cohen believes there is potential to make eBay a much bigger rival to Amazon through this acquisition. He indicated that he will take the offer directly to shareholders if eBay is not receptive to the proposal.