Gamestop has launched a bid to buy online auction and e-commerce giant eBay for more than £40billion.
The offer, comprising a 50/50 split of cash and stock, values eBay shares at $125 each, which is $20 higher than the valuation when trading closed on Friday, the BBC reports.
Ryan Cohen, GameStop's Chief Executive, has indicated he will take the offer directly to eBay's shareholders should the board knock back his approach.
In a letter to the eBay board, Cohen says he intends to make $2billion of cost savings
He states: "eBay spent $2.4billion on Sales & Marketing in fiscal 2025 and added one million net active buyers (134M to 135M).
"We will take $2billion of annualised costs out within 12 months of close: $1.2billion from Sales & Marketing, $300million from Product Development, and $500million from General & Administrative."
He adds: "Following close, I will serve as Chief Executive Officer of the combined company. I will receive no salary, no cash bonuses, and no golden parachute – I will be compensated solely based on the performance of the combined company."
FSTE100
The UK's flagship share index, the FTSE 100, was up 22 points at 10,363 shortly after opening this morning.
Brent crude oil futures were up 0.30% sitting at $108.42 a barrel this morning.
Companies reporting
- Palantir Technologies* - Q1 Results