Background
GameStop Corp. (NYSE:GME) has been pursuing a takeover of eBay Inc. (NASDAQ:EBAY). In May, CEO Ryan Cohen submitted a cash‑and‑stock proposal valued at approximately $56 billion, which eBay rejected as “neither credible nor attractive.”
Stake Accumulation
According to a regulatory filing made late Friday, GameStop now holds 43.4 million eBay shares, representing a 9.8 % ownership stake, up from the roughly 5 % economic stake Cohen disclosed when he first approached eBay’s board. The increase was achieved by purchasing 3.5 million shares for about $381 million last month and settling an additional 39 million shares derived from put‑call pairs on Friday.
Financing and Commitment
The proposed acquisition relies heavily on a non‑binding commitment from TD Securities, the investment‑banking arm of Toronto‑Dominion Bank (NYSE:TD), for up to $20 billion of debt financing, conditional on the combined entity obtaining an investment‑grade credit rating. Cohen also pledged $500 million of his own capital to the transaction. In parallel, GameStop shareholders approved an increase in the company’s authorized share count last month, providing greater flexibility to raise equity if needed.
Management Commentary
In a transcript of a television interview filed separately on Thursday, Cohen stated, “I’m not going to call my shots, but we’re coming for eBay one way or another,” and indicated that he would not negotiate against himself despite interest from other parties.
Market Reaction
Following the news, eBay shares rose 1.04 % while GameStop shares slipped 0.14 % in early trading.