GameStop's $56 billion eBay bid raises financing doubts among investors - Reuters

<a href="https://news.google.com/rss/articles/CBMi7gFBVV95cUxNNHpnZ3BMQ3ZEWkUyRG9qUmkzVEE2ODlRUnAxN0NmSE43VFhhN25BLWxUblUwREtIU2lSVGkzRXJyQzRhY1VVWmV2Znk4c0MyNXNsT3M5dzV0blNuczV0N2VUTGUteXltaXJYeXp0ZG1HT2tZZXJIeHJoQ01KeWt6VGJEUTVESTJHcmFGeFNRTUktQ2JLX2tOOGhQTldnelBsNTJaaFNmODUxcjJGd1VkVF81bHRQWWlVREtmbnlNdDJHeXJLUzM5TVFPcmY4ZHV6TDRmMnlWOGlNZkR3dVRBZkxwTjBVVF9MNmdfNDJn?oc=5" target="_blank">GameStop's $56 billion eBay bid raises financing doubts among investors</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

GameStop has offered to buy eBay for $55.5 billion in an unsolicited bid, valuing eBay at $125 per share, split 50-50 between cash and stock. CEO Ryan Cohen warned that the offer could turn hostile if rebuffed by eBay's board.

GameStop's $56 billion bid for eBay raises funding and strategy concerns, with markets doubting the deal despite potential to reshape the collectibles e-commerce space. GameStop has already built a 5% stake in eBay and touted $20 billion in potential debt financing from TD Securities.

GameStop's $55 billion bid to acquire eBay has raised eyebrows due to the disparity in company sizes and GameStop's recent history. CEO Ryan Cohen envisions combining GameStop’s physical retail footprint with eBay’s online presence to scale both companies.

GameStop might issue additional stock to complete its $55 billion takeover of eBay amid skepticism from economists about whether the video game retailer could afford to acquire the company, whose market value is more than double GameStop's.

GameStop Corp. is proposing to buy eBay Inc. for about $56 billion in cash and stock, a bold attempt by Ryan Cohen to take over a storied e-commerce name several times larger. GameStop has already built a roughly 5% stake in eBay and secured an initial, non-binding “highly confident letter” from TD Bank to provide about $20 billion of debt financing.

eBay shares surged in premarket trading following GameStop's $56 billion buyout bid, valuing eBay at $125 per share in cash and stock. GameStop plans to transform its 1,600 U.S. retail locations into drop-off and shipping points and introduce live product sales broadcasts.

Analysts flag financing challenges given GameStop’s smaller balance sheet. GameStop has already built a 5% stake in eBay through shares and derivatives, but eBay’s market capitalisation is nearly four times larger than GameStop.