Overview
- eBay’s board formally rejected GameStop’s unsolicited $125-per-share cash-and-stock offer, calling it “neither credible nor attractive” and citing financing, leverage, and governance risks.
- Ryan Cohen told eBay’s chair he will take the proposal straight to shareholders after the board declined to engage, and he has built roughly a 5% stake to support a hostile push.
- Moody’s analysis projects about $31.4 billion in total debt for a combined company, with annual interest costs likely topping $1 billion, which would pressure free cash flow even if $2 billion in cost cuts materialize.
- Key funding details remain uncertain, including a cited TD Securities letter for up to $20 billion and the chance the deal would miss investment-grade credit ratings, which could drive up borrowing costs.
- Skepticism is rising in markets, as traders on Polymarket put the odds of success near 13% and investor Michael Burry exited his GameStop stake, reflecting fears of heavy debt and share dilution.