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GameStop Corporation (GME.US) Offers to Acquire eBay Inc. (EBAY.US), Targets USD2B Cost Cuts Within 12 Months Post-Deal
According to foreign media reports, GameStop Corporation (GME.US) Chief Executive Officer Ryan Cohen said he has submitted a USD55.5 billion acquisition offer to eBay Inc. (EBAY.US...
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GameStop Corporation (GME.US) Offers to Acquire eBay Inc. (EBAY.US), Targets USD2B Cost Cuts Within 12 Months Post-Deal
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According to foreign media reports, GameStop Corporation (GME.US)      Chief Executive Officer Ryan Cohen said he has submitted a USD55.5 billion acquisition offer to eBay Inc. (EBAY.US)      at USD125 per share, representing a premium of about 20% to eBays closing price last Fri (1st). The target is to reduce eBays annualized expenses by USD2 billion within 12 months after the transaction, including USD1.2 billion in sales and marketing expenses, USD300 million in product development costs, and USD500 million in general and administrative expenses.

After accounting solely for the cost reductions, eBays diluted GAAP EPS from continuing operations would increase from USD4.26 to USD7.79 in the first year. In addition, GameStop operates about 1,600 outlets across the United States, which could provide eBay with a nationwide network for authentication, goods intake, logistics and live-streaming e-commerce.

Related NewsInitial Jobless Claims for May/02 in the United States is 200K, higher than the previous value of 190K. The forecast was 205K.
Cohen also said he has received a commitment letter from TD Securities to provide approximately USD20 billion in debt financing to help complete the transaction. Upon completion, he will serve as Chief Executive Officer of the combined company, with compensation entirely tied to the merged entitys performance, and will not receive a salary or cash bonuses. (mn/w)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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