Moody's says GameStop's proposed eBay takeover is credit negative
Updated
Updated · CNBC · May 7
Moody's says GameStop's proposed eBay takeover is credit negative
4 articles · Updated · CNBC · May 7
The agency said the $56 billion bid could leave the combined company with leverage near nine times EBITDA, threatening a TD Securities financing condition requiring investment-grade credit.
GameStop has cited a $20 billion financing commitment from TD Securities, but that support may fail if the merged group is pushed below investment grade.
The bid has prompted scrutiny because GameStop's roughly $11 billion market value is far below the deal value; eBay says its board is reviewing the offer.
Is GameStop's 'unfinanceable' bid a real offer or a tactic to profit from its hidden eBay stock options?
Can GameStop's retail stores realistically challenge Amazon by authenticating collectibles for a digital giant like eBay?