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GameStop nears full common-share stake in eBay before buy push
GameStop said it holds 43.4 million eBay shares, or 9.8%, and has bought or settled tens of millions of shares since early May as it continues pursuing the roughly $56 billion deal.
GameStop said in a regulatory filing late Friday that it now owns nearly 10% of e-commerce company eBay, a move that underscores its intent to continue pursuing plans to buy eBay even after its unsolicited offer was rejected. GameStop reported it holds 43.4 million outstanding eBay shares, equivalent to 9.8%.
Reuters reports the filing also marks a shift from an earlier “economic stake” built through derivatives and beneficial ownership. GameStop said that over recent weeks it converted that position into common shares, including buying 3.5 million eBay shares for about $381 million last month, and settling 39 million eBay shares from put/call pairs on Friday.
A separate filing on Friday included comments from GameStop CEO Ryan Cohen, recorded as a transcript of his Bloomberg Television interview. Cohen said, “I’m not going to call my shots, but we’re coming for eBay one way or another,” as he reiterated his bid to press ahead with the transaction.
GameStop shareholders previously approved increasing the company’s authorized share count, giving it more flexibility for the transaction, and Cohen is also putting $500 million of his own money into the deal. Wall Street has questioned the proposed financing structure, which relies heavily on a non binding TD Securities commitment letter for up to $20 billion in debt that is contingent on the combined company achieving an investment grade credit rating.