Executive Summary
- GameStop makes a $55.5B takeover bid for eBay.
- The offer includes $125 per share, with 50% cash and 50% GameStop common stock.
- The deal’s feasibility is questioned by many, given GameStop’s current market capitalization.
The Buzz Score
The Internet’s Verdict: 70% Hyped, 30% Skeptical
Forum Reactions
Many are shocked by the news, with some questioning how GameStop plans to finance the deal.
CEO gets paid ‘only if GameStop achieves a market capitalization of $20 billion.’ Buying a $55bn company would certainly achieve that quickly.
Others have pointed out the potential issues with the offer, including the fact that GameStop doesn’t have the necessary funds.
GameStop doesn’t have (even close to) $55.5B. Their offer from the letter is literally impossible: > Our offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock
Some have suggested alternative approaches, such as eBay putting itself up for sale on its own platform.
I believe ebay should put itself up for sale on ebay instead.
Analysis
The proposed deal has sparked a lot of discussion, with many trying to understand the potential implications and feasibility of the takeover bid.
Focus Keyword: GameStop eBay
