GameStop, the well-known chain of video game and consumer electronics stores that rose to fame in 2021 due to the 'meme' stock frenzy, will put to a vote at its next general meeting of shareholders an increase in the maximum number of shares it can issue up to 2.5 billion shares, amid the development of the takeover bid launched to acquire 100% of eBay.
Currently, the company has an issuance cap of 1 billion shares and intends to raise it precisely to 2.505 billion, of which 5 million would be preferred stock shares and the rest ordinary shares, according to the documentation submitted to the U.S. Securities and Exchange Commission (SEC).
At the moment, GameStop has around 448 million shares in circulation and, after deducting shares already committed, has room to place another 268 million on the market, a cushion it wants to expand while the takeover bid for eBay continues.
"We are also seeking your approval to increase our authorized share capital. We believe our stock is valuable and we have no intention of issuing new shares lightly. An ample reserve of authorized shares ensures that GameStop can act decisively when the right opportunity arises," reads the statement signed by the board of directors.
GameStop has put a non-binding acquisition offer on the table, combining cash and stock, valued at $55.5 billion (€47.335 billion) with the aim of taking full control of eBay.
However, eBay's board of directors has rejected the proposal made by GameStop, deeming that the video game store chain's offer "is neither credible nor attractive." Despite this refusal, GameStop's Chairman and CEO, Ryan Cohen, has threatened to turn the operation into a hostile takeover bid and direct his proposal directly to eBay shareholders.