GameStop Weighs Next Steps on $56 Billion eBay Bid as Analysts Doubt Financing and Voting Power
Updated
Updated · Reuters · May 27
GameStop Weighs Next Steps on $56 Billion eBay Bid as Analysts Doubt Financing and Voting Power
4 articles · Updated · Reuters · May 27
Ryan Cohen has few immediate paths after eBay rejected his $56 billion offer, with Wall Street now focused on whether he escalates through a tender offer, proxy fight or public campaign.
6.6% of GameStop's eBay economic exposure is mostly tied to derivatives linked to 29 million shares, while it owns only 25,000 shares outright—far below the roughly 20% common-stock stake typically needed to call a special meeting.
A tender offer also looks difficult because major index holders Vanguard, BlackRock and State Street own more than 22% of eBay, and analysts say they are unlikely to back a hostile bid.
Financing remains a central obstacle: GameStop has $9.4 billion in cash and a non-binding TD Securities letter for up to $20 billion in debt, contingent on investment-grade ratings for a combined company.
The standoff comes as eBay stock has risen 32% this year and about 200% since 2020 under CEO Jamie Iannone, strengthening the board's hand even as Cohen keeps pressure on management.
Will merging GameStop stores with eBay's platform unlock billions in value or prove to be a disastrous mismatch?
Beyond his meme stock fame, can Ryan Cohen realistically finance his massive $56 billion takeover bid for eBay?