Ryan Cohen built Chewy into a top online pet retailer and sold it to PetSmart. He then rebuilt GameStop Corp. (NYSE:GME)'s balance sheet after the meme-stock era. Now he wants to buy a company roughly four times GameStop's size. He stated in a recent interview with Bloomberg:
"We're coming for eBay one way or another."
GameStop now owns 43.4 million eBay Inc. (NASDAQ:EBAY) shares, a 9.8% stake, according to a regulatory filing. The firm bought 3.5 million shares for about $381 million between June 8 and June 15. It then converted 39 million more shares from put/call options on July 17. This follows the 5% stake GameStop disclosed in May alongside an unsolicited offer to buy eBay for about $125 per share, valuing the deal at roughly $56 billion. eBay's board rejected the offer within days, calling it "neither credible nor attractive" and noting concerns about GameStop's financing and the logic of the combination.
That raises a simple question. Can a company one-fourth the size of its target actually complete this deal and swallow a giant (eBay)? And if it can't, does building a near-10% stake still make sense for GameStop shareholders, or is Cohen spending real capital on a bid he can't close?
BULL CASE
#eBay #company #roughly
"We're coming for eBay one way or another."
GameStop now owns 43.4 million eBay Inc. (NASDAQ:EBAY) shares, a 9.8% stake, according to a regulatory filing. The firm bought 3.5 million shares for about $381 million between June 8 and June 15. It then converted 39 million more shares from put/call options on July 17. This follows the 5% stake GameStop disclosed in May alongside an unsolicited offer to buy eBay for about $125 per share, valuing the deal at roughly $56 billion. eBay's board rejected the offer within days, calling it "neither credible nor attractive" and noting concerns about GameStop's financing and the logic of the combination.
That raises a simple question. Can a company one-fourth the size of its target actually complete this deal and swallow a giant (eBay)? And if it can't, does building a near-10% stake still make sense for GameStop shareholders, or is Cohen spending real capital on a bid he can't close?
BULL CASE
#eBay #company #roughly
17 days ago
