GameStop Shares Drop After Announcing Bid to Acquire eBay for Over $55 Billion

1-Minute Brief

Analysts and investors have raised questions about GameStop’s ability to finance its proposed eBay acquisition.

Key Facts

• GameStop made an offer to acquire eBay Inc. for about $56 billion in cash and stock.
• GameStop’s shares fell more than 10% following the announcement of the eBay bid.
• Michael Burry sold his entire position in GameStop after the acquisition offer was made, according to Bloomberg.
• GameStop CEO Ryan Cohen declined to answer questions about how the company would finance the $55.5 billion bid.
• Burry’s exit from GameStop came after the company’s offer to buy eBay, according to Bloomberg.

What Happened

GameStop made an offer to acquire eBay for over $55 billion. Following the announcement, GameStop’s share price fell and Bloomberg reported that investor Michael Burry exited his entire position in the company. CEO Ryan Cohen did not provide details on financing when questioned.

Why It Matters

The scale of the proposed acquisition relative to GameStop’s size has prompted scrutiny of the deal’s feasibility and its potential impact on shareholders and the market.

What's Next

Investors and analysts are expected to scrutinize GameStop’s financing plans and the likelihood of the eBay acquisition proceeding. Market reactions and further statements from company leadership are anticipated.