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Investment-Grade Condition Exposes Risk in GameStop’s $56 Billion eBay Bid

Moody's says the plan would pile on debt that threatens any bank backing.

Overview

  • CNBC reported that the TD Securities letter for up to $20 billion in financing requires the combined GameStop–eBay to keep an investment‑grade rating.
  • That requirement clashes with Moody's view that the proposal is credit negative, with leverage for the merged company nearing nine times EBITDA before any savings.
  • GameStop offered $125 per share in a roughly $56 billion deal split between cash and new GameStop stock, with cash drawn from about $9–9.4 billion plus the TD package.
  • EBay confirmed it is reviewing the unsolicited proposal, while analysts at Wedbush, Morgan Stanley, and Bernstein flagged low odds of the deal closing.
  • Cohen listed memorabilia on eBay on Wednesday in a publicity push that legal scholars say will not materially fund the takeover.