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FinanceGameStop discloses nearly 10% stake in eBay, pushes ahead with acquisition
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GameStop has increased its stake in eBay to nearly 10%, according to an SEC filing, as the gaming retailer continues to pursue a takeover despite eBay's rejection of its initial $56 billion bid in May. GameStop now owns over 43 million shares, including 3.5 million purchased in June for $381 million and 39 million shares settled via put/call pairs. CEO Ryan Cohen has dropped his performance pay package to focus on the acquisition and has publicly stated he prefers a collaborative deal but will take the matter to shareholders if necessary. Cohen has outlined plans to use GameStop stores as nodes for eBay's marketplace and live commerce. eBay has not engaged further with Cohen since rejecting the initial offer.
Source report
Author: Cara Salpini, Retail Dive Read Time: 2 minutes
GameStop has increased its stake in eBay to nearly 10%, signaling its continued pursuit of an acquisition despite eBay's earlier rejection.
According to a U.S. Securities and Exchange Commission (SEC) filing, GameStop now owns more than 43 million shares of eBay stock, equivalent to 9.8%. This includes:
- Approximately 3.5 million shares purchased between June 8 and June 15 for $381 million.
- 39 million shares settled last week as part of put/call pairs.
The gaming retailer previously owned a 5% stake in early May.
Background
GameStop's initial $56 billion bid to acquire eBay in May was rejected. eBay called the offer "neither credible nor attractive" and pointed to its own turnaround strategy as evidence of progress.
Since then, GameStop CEO Ryan Cohen has continued to push for a deal. In late June, Cohen asked the board to approve a measure dropping his performance pay package to focus "on GameStop's operating performance and its proposed eBay acquisition." The measure was approved.
Cohen's Public Campaign
Cohen has also given interviews about the deal and recorded the transcripts in SEC filings. In a Thursday interview with Bloomberg Tech, Cohen reiterated a plan to use GameStop's stores as nodes for eBay's marketplace and live commerce offerings.
During the conversation, Cohen stated that eBay's management team and board had not engaged further with him. eBay did not immediately respond to a request for comment from Retail Dive.
"I would love for this to be a collaborative process and a consensual process. That's my preference. That's number one," Cohen said. "But if that doesn't happen, then it's going to be shareholders' decision because they're the owners of the business."
When asked if GameStop would consider raising its offer, Cohen replied: "I'm not going to call my shots, but we're coming for eBay one way or another."
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Source
Yahoo FinanceWestern
Part of this Story
GameStop Discloses 10% eBay Stake as It Pushes for Acquisition Deal