A 55 billion bid to acquire eBay.

GameStop CEO Ryan Cohen has made an unsolicited offer of $55.5 billion to acquire eBay. He believes this deal would allow them to provide strong competition to Amazon.

According to the proposal made on Sunday, $125 per share is to be paid, with 50% offered in cash and the remaining 50% in GameStop shares. This amount represents a 20% premium over eBay's closing share price last Friday.

Ryan Cohen began accumulating shares in eBay on February 4th and currently holds approximately a 5% stake in the company. If eBay opposes the proposal, Cohen is prepared to pursue it through its shareholders. However, the deadline for nominating directors for the annual meeting scheduled for June has already passed.

It is not yet clear how GameStop, with a market capitalization of approximately $12 billion, will secure the remaining funds needed for a massive $56 billion deal. eBay's stock price, currently valued at around $46 billion, rose by about 12% after GameStop's interest was announced. However, an agreement has been reached with TD Bank for a $20 billion credit facility, and external investors such as wealthy Middle Eastern funds may also be utilized. GameStop also holds approximately $9 billion in cash reserves.

Ryan Cohen, who gained popularity during the controversial stock market frenzy of 2021, was appointed Chairman and CEO of GameStop in 2023. Under his leadership, the company has closed many of its international operations and focused on selling high-profit margin goods. He states that both GameStop and eBay have similar market targets, and significant profits could be generated by integrating GameStop's retail network with eBay's online operations. These stores could also serve as collection and authentication centers for eBay items and facilitate the development of live commerce.

eBay is already enhancing its operations using artificial intelligence, and its gross merchandise volume increased by 18% in the last quarter. Cohen, who expects to serve as CEO of the combined company, has decided not to take a salary, and his full compensation will be determined solely by the company's performance. If certain criteria are met, he also has the potential to own up to $35 billion in shares.