GameStop Corp. (NYSE: GME) is falling once more as a result of its new plan is just not small nor simple to finance. The retailer desires to purchase eBay Inc. (NASDAQ: EBAY) in a cash-and-stock deal price about $56 billion, whereas GameStop itself is price lower than $12 billion.
That’s the reason merchants aren’t treating this like a clear takeover story. They’re treating it like a funding downside with a inventory chart hooked up.
The supply costs eBay at $125 per share. That’s above its final shut earlier than the bid, and it’s far above the place eBay traded when GameStop started shopping for shares on Feb. 4.
However the market nonetheless pushed GameStop down 10%. eBay rose about 5% to close $109, which remains to be properly underneath the bid worth. That hole says traders aren’t satisfied this deal will survive.
Michael Burry dumps GameStop after Ryan Cohen makes big eBay bid with out deal in place
Michael Burry, the investor identified from The Large Brief, bought his full GameStop place after the bid grew to become public. Michael had backed the corporate round 2019, when the early bull case helped feed the inventory’s well-known rally. This time, he didn’t keep round for the subsequent chapter.
Michael informed subscribers of his Substack publication on Monday:
“I bought my whole GME place. Any which approach I sliced it, the On the spot Berkshire thesis was by no means appropriate.”
He additionally mentioned GameStop was the primary inventory he had bought since beginning the publication. His situation was debt. A deal this huge might pressure GameStop to borrow closely, situation inventory, or construct a financing bundle that modifications the entire story for shareholders.
GameStop introduced the bid on Sunday. The proposal is unsolicited and nonbinding, so eBay has not agreed to something. The supply is break up between money and GameStop widespread inventory. It offers eBay traders a 20% premium to Friday’s $104.07 shut and a 46% premium to the Feb. 4 shut.
Ryan Cohen, GameStop’s CEO, informed CNBC on Monday that he had not began talks with eBay administration. He mentioned:
“We’re simply beginning. For apparent causes, eBay is a public firm, there’s every kind of perverse monetary incentives from the board to the administration workforce. So there’s just one approach to method one thing like this.”
eBay confirmed it obtained the supply and mentioned its board would assessment it. TD Financial institution Group (NYSE: TD) has given GameStop a $20 billion financing letter, however that also leaves a big hole beside the total deal worth.
GameStop places its Bitcoin stash close to eBay’s enormous purchaser community
The crypto angle is the place this will get even stranger. GameStop has not mentioned it can plug Bitcoin into eBay funds. Nonetheless, the query is now sitting there in plain sight: what occurs if an organization holding $BTC buys a market with 135 million energetic patrons?
GameStop accredited Bitcoin as a treasury reserve asset and purchased 4,710 $BTC for $513 million in Might 2025. It then used that stash as collateral with Coinbase International Inc. (NASDAQ: COIN) for an choices technique meant to earn yield whereas protecting publicity to $BTC.
Proper now, Bitcoin is usually a balance-sheet asset for GameStop. ETFs helped deliver establishments in, however every day spending nonetheless faces charges, taxes, and awkward consumer habits.
eBay brings attain throughout 190 markets and practically $80 billion in 2025 gross merchandise quantity. Earlier than any crypto cost dream issues, GameStop has to point out the way it pays for eBay.
