Cohen Vows to Take eBay 'One Way or Another,' Details Financing and Shareholder Plan
GME is trading near its 52-week low of $19.93 (9.6% above the low) on light trading volume (0.4× avg).
Summary
GameStop CEO Ryan Cohen escalated the hostile bid for eBay, stating 'we're coming for eBay one way or another,' and confirmed the increased authorized share count enables the acquisition. He addressed financing concerns and plans to present a detailed business plan directly to eBay shareholders.
Key Events · M&A and Partnerships · GME
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Cohen Escalates Hostile Bid
Cohen declared 'we're coming for eBay one way or another,' signaling a potential escalation beyond the current $125 per share offer.
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Authorized Shares Enable Acquisition
Cohen confirmed the recent shareholder vote to increase authorized Class A shares to 2.5 billion gives GameStop the flexibility to buy eBay.
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Financing Details Addressed
Cohen cited a highly confident letter from bankers and broad interest from capital markets, asserting the pro forma combined company will be investment grade despite Moody's concerns.
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Business Plan to Go Directly to Shareholders
Cohen plans to present a detailed business plan directly to eBay shareholders, bypassing media, with a public release in due course.
Analysis · GME · Trade & Services
In a Bloomberg interview, GameStop CEO Ryan Cohen escalated the hostile bid for eBay, stating 'we're coming for eBay one way or another.' He confirmed that the recent shareholder approval to increase authorized shares enables the acquisition, addressed financing concerns by citing a highly confident letter from bankers and broad capital markets interest, and asserted the combined company would be investment grade. Cohen also revealed he will present a detailed business plan directly to eBay shareholders, bypassing media. This marks a shift from prior communications by directly threatening escalation and providing new specifics on financing and the strategic use of the authorized share increase.
At the time of this filing, GME was trading at $21.85 on NYSE in the Trade & Services sector, with a market capitalization of approximately $9.8B. The 52-week trading range was $19.93 to $28.10. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.