GameStop Makes Surprise $55.5 Billion Bid for eBay
Video game shop GameStop has made a surprise takeover offer for eBay. The offer is worth $55.5 billion to $56 billion.
GameStop offered $125 per share. eBay did not ask for this offer.
eBay is about four times larger than GameStop. GameStop CEO Ryan Cohen said the two companies together could rival Amazon. Cohen is prepared to go directly to eBay shareholders if the board says no.
Klear Note — A takeover bid means one company offers to buy another. GameStop sells video games; eBay is an online marketplace for many items.
Key Terms 4
- takeover offer When one company tries to buy another company
- unsolicited Not asked for; the other side did not request it
- per share The price paid for each small piece of ownership in a company
- market capitalisation The total value of a company based on its share price