GameStop offers nearly $55.5B to acquire eBay

US-based video game retailer GameStop has made a $55.5 billion offer to acquire e-commerce company eBay.

According to a statement issued by GameStop on Sunday, eBay shareholders were offered $125 per share in cash and stock.

The offer represents a premium of nearly 20% above eBay’s closing share price on Friday.

The total acquisition value would reach $55.5 billion, with half the payment planned in cash and the remaining half in GameStop shares if the offer is accepted.

Based on current market data, eBay is valued at around $46 billion, while GameStop’s market value stands at about $12 billion.

The acquisition is expected to be financed through GameStop’s existing cash resources and new debt instruments. According to US media reports, a Middle Eastern sovereign wealth fund may also be involved in the process.

‘Legit competitor to Amazon’

GameStop CEO Ryan Cohen told The Wall Street Journal that the acquisition would create a strong alternative to e-commerce giant Amazon.

Cohen said the company expects $2 billion in savings within a year after the deal’s completion.

“My goal is to turn eBay into a company worth hundreds of billions of dollars,” he said.