GameStop offers to buy eBay for $56bn
GameStop said Cohen would be the chief executive of the combined company.He would "receive no salary, no cash bonuses, and no golden parachute" and "be compensated solely based on the performance of the combined company."GameStop, which currently has a stock market valuation of around $11.9bn, said it has a commitment letter from TD Securities to provide around $20bn in debt to help finance the deal.The majority of the proposed cost cuts would be in eBay's sales and marketing operation, where Cohen said he planned to lower spending by $1.2bn.Higher spending by that area of the business had not produced more users for the "marketplace with near-universal brand recognition," GameStop said.Shares in eBay jumped by more than 13% in after-hours trading when news of the potential offer emerged on Friday.Though GameStop has closed many of its stores in recent years, it still has around 1,600 outlets in the US. Those shops would give eBay a national network for its "live commerce" and other business operations, Cohen said.Cohen, who became the GameStop boss in 2023, has criticised its slow shift into e-commerce.
