GameStop Corp (NYSE:GME) shares are jumping Wednesday after a new filing revealed that the company has increased its ownership stake in eBay Inc (NASDAQ:EBAY) to roughly 6.6% from about 5%. The move escalates CEO Ryan Cohen's ongoing push to acquire the e‑commerce company.
- GameStop stock is building positive momentum. Why are GME shares climbing?
GameStop Boosts Its Stake In eBay
A new SEC filing showed that GameStop now controls about 6.55% of eBay's outstanding shares when including both common stock and shares tied to put and call options. The increase follows Cohen's unsolicited attempt earlier this month to buy eBay for roughly $56 billion.
Reuters reported that eBay rejected the offer, calling it “neither credible nor attractive.” Cohen has since said he is prepared to take the proposal directly to shareholders if necessary. Analysts quoted by Reuters noted that increasing his stake could help him pursue options such as calling a special meeting.
Cohen Pushes Back
Cohen reportedly responded forcefully after eBay dismissed the $125‑per‑share bid. In a letter to Chairman Paul Pressler, he argued that shareholders should be allowed to evaluate the offer.
Cohen contrasted his own compensation structure with that of eBay CEO Jamie Iannone, emphasizing that he takes no salary or bonuses and has invested $128 million of his own money into GameStop since 2020. He criticized Iannone's reported $144 million compensation over six years.
In an interview with Piers Morgan, Cohen described eBay as an asset that is poorly run and defended the financing behind his takeover proposal. He said the structure is half cash and half stock, noting that GameStop has $9 billion in cash and that bankers believe another $20 billion can be raised.
He acknowledged that the deal would involve leverage but said he does not intend to run a highly leveraged business. Cohen also claimed he could cut at least $2 billion in costs at eBay.
GME Shares Are Rising
GME Price Action: GameStop shares were up 2.35% at $22.63 at the time of publication on Wednesday, according to Benzinga Pro.
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