GameStop Corp. has confirmed a proposal to acquire eBay for approximately $55 billion in a deal structured with equal parts cash and GameStop stock.
The offer values the online retailer at around $125.00 per share, with up to $9.4 billion of the total coming from GameStop's existing cash and liquid investments.
GameStop plans to finance the remaining portion of the acquisition using options worth up to $20 billion while targeting annual operating expense cuts of $2 billion.
The proposal is described as non-binding, indicating that the deal requires further regulatory approval and shareholder consent before it can be finalized.
GameStop CEO Ryan Cohen stated he will be compensated solely based on the performance of the combined company rather than a fixed salary.
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