GameStop Could Issue Stock In $55 Billion eBay Takeover Bid

GameStop may issue additional stock to fund its $55 billion takeover bid for eBay, a move aimed at addressing skepticism from economists regarding the video game retailer's financial capacity. GameStop CEO Ryan Cohen stated that the half-cash, half-stock offer might necessitate issuing new shares. The bid was publicly announced Sunday, but GameStop has yet to discuss it with eBay's management. Analysts, including those from Morgan Stanley and Bernstein, expressed doubt about the deal's feasibility due to GameStop's smaller balance sheet and the significant debt and equity required. Investor Michael Burry also voiced concerns about GameStop's ability to acquire eBay, whose valuation significantly surpasses GameStop's $11.4 billion market cap. Following the offer, eBay shares surged 5.7% in early trading Monday, marking its largest intraday gain since January 2025. eBay's market valuation has grown by nearly $20 billion over the past year, with significant growth this year after its acquisition of Deepop.