GameStop Reaffirms $125-Per-Share Bid for eBay, Projects $600M EBITDA
EBAY•GameStop reaffirmed its $125-per-share takeover offer for eBay, valuing it at roughly $55.5 billion, after eBay’s board dismissed the cash-and-stock proposal as neither credible nor attractive. GameStop also forecast fiscal 2026 adjusted EBITDA above $600 million and plans to release detailed transaction documents soon.
1. Bid Reaffirmation and Offer Details
GameStop reiterated its non-binding proposal to acquire all eBay shares at $125 apiece, split evenly between cash and GameStop stock, valuing eBay at approximately $55.5 billion. CEO Ryan Cohen signaled his intent to lead the combined company without taking a salary or cash bonuses.
2. Financing Plan and Cash Reserves
The proposal leans on around $9.4 billion in GameStop’s cash reserves and a commitment letter for up to $20 billion in debt financing from TD Securities. Ryan Cohen has also indicated a potential personal injection of $500 million toward the transaction’s funding.
3. EBITDA Projections and Share Exposure
GameStop forecast fiscal 2026 adjusted EBITDA to exceed $600 million, a jump from $345.4 million in fiscal 2025, and noted it directly holds 4.34 million eBay shares with economic exposure to another 39.05 million through derivatives. Its stock rose more than 2% in after-hours trading following the announcement.
4. eBay Board Rejection and Skepticism
eBay’s board dismissed the takeover bid as neither credible nor attractive, raising concerns over financing structure, governance of the merged entity, and Cohen’s compensation framework. Observers have highlighted the challenge of bridging the roughly fivefold gap between the market values of GameStop and eBay.
