Simply put
- GameStop is asking shareholders for approval to increase the number of authorized shares from the current 1 billion to 2.5 billion.
- The proposal is one of five to be voted on at the company’s annual general meeting in July.
- The move could give the company more ammunition as it seeks to acquire eBay following an initial rejection.
GameStop (GME), a publicly traded video game and collectibles company, is seeking shareholder approval to increase the number of authorized shares from 1 billion to 2.5 billion. According to a filing Friday with the SEC.This could spur the company’s next move to acquire eBay.
The filing details five different proposals for approval ahead of the company’s July 7 annual shareholder meeting, including details on compensation plans for the board of directors and executive officer and CEO Ryan Cohen.
“With our balance sheet, operational improvements, and expanded capabilities, we are well-positioned to pursue opportunities that create meaningful long-term value for our shareholders,” the filing said. “The proposals that have been brought before you, such as the Authorized Share Amendment and the CEO Performance Award, are designed to ensure that we act decisively when such opportunities arise.”
The company is keen to “pursue opportunities” for long-term stock value, and in a few weeks Aimed to acquire global collectibles market eBay (EBAY) in a half-stock, half-cash deal valued at more than $55 billion.
This unsolicited offer was rejected by eBay and a call was made. “Not reliable or attractive” In a letter addressed directly to Cohen.
Despite the denial, the gaming company added to its position in eBay this week, acquiring 25 million common shares and gaining further exposure to EBAY stock through a put/call pair. According to a separate filing with the SEC This is a must as they own over 5% of the online market. The company currently owns approximately 6% of EBAY stock.
If the increase in GameStop shares is approved, it could further expand its stake in eBay.
“To maximize long-term value, we believe we need to maintain maximum flexibility,” the proposal says. “This includes having the structural capacity to undertake innovative acquisitions, major investments or other value-creating measures when the right opportunity meets our investment criteria.”
“This authorization will enable the board to pursue opportunities to significantly increase the intrinsic value per share without procedural delays,” it added.
GME stock is down 1.93% on Friday, trading around $22.06. Shares have fallen about 14% in last month’s trading, but are up more than 9.8% since the beginning of the year. the company bought Over $500 million in Bitcoin Last year, I transferred all my BTC except 1BTC to Coinbase Pursuing a covered call strategy To generate potential income from your holdings.
Meanwhile, EBAY fell about 0.19% on Friday, but is up more than 34% year-to-date.
