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GameStop’s $56 Billion eBay Bid Faces Fresh Financing Doubts

A Bloomberg-sourced report says the $20 billion pledge depends on an unlikely credit rating.

Overview

  • People familiar with the terms told Bloomberg the $20 billion from TD Securities would be available only if the combined company earns a credit rating that is seen as unrealistic for its debt load.
  • GameStop CEO Ryan Cohen has proposed an unsolicited $56 billion takeover of eBay to build a new challenger to Amazon.
  • GameStop cites $9.4 billion in cash and says about $20 billion is pledged, leaving a large shortfall with no clear plan for the rest.
  • Cohen has repeated that the offer would be paid “half cash, half stock,” yet his media appearances left the source of the missing funds unanswered.
  • Early enthusiasm lifted both stocks, but skepticism has grown as betting markets now price the chance of a deal at about 15 percent.