The longtime eBay investor said the $125-a-share, $56 billion unsolicited bid looks hard to finance, with GameStop worth about $11 billion against eBay’s $48 billion.
GameStop has about $30 billion lined up through more than $9 billion cash and a $20 billion TD Securities debt commitment, while CEO Ryan Cohen said more stock could be issued.
EBay said on Monday it is reviewing the offer, but Smead argued the company is strong independently, with shares up nearly 25% this year and about 55% over 12 months.
Is the $56 billion bid for eBay a visionary move or a reckless gamble fueled by debt?
Can GameStop's physical stores truly unlock eBay's potential, or is the vision flawed?