GameStop Corp. is seeking shareholder approval to increase its authorized common stock to 2.5 billion shares. This move escalates an unsolicited $56 billion bid for eBay Inc. The company currently has an authorized limit of 1 billion shares.
GameStop is offering $125 per share in a deal structured as half-cash and half-stock. eBay’s board previously rejected the proposal as neither credible nor attractive. CEO Ryan Cohen recently increased GameStop’s economic stake in eBay to 6.55%.
eBay stock traded flat at $116.88 following the announcement. Cohen continues to lobby for the merger as market analysts remain skeptical of the heavily leveraged deal.