GameStop Corp. amended its agreement to exchange approximately $1.4 billion of convertible senior notes due in 2030 and 2032, shifting part of the consideration from stock to cash. Under the revised terms, noteholders will receive about 55.5 million shares and $358.4 million in cash, replacing the remaining stock consideration and eliminating additional contingent issuance. The company expects to cancel roughly $1.4 billion of principal, leaving about $2.8 billion of convertible notes outstanding. The cash payment is modest relative to its preliminary cash balance of $5.05 billion to $5.07 billion, but the company is using cash to retire zero-coupon notes while issuing millions of shares. Preliminary net sales are expected to fall to $780 million to $800 million from $972.2 million, while operating income is projected at $150 million to $170 million, up from $66.4 million a year earlier. Net income of $290 million to $310 million includes about $238 million of net gains from an eBay derivative and equity investment, partly offset by a $75 million loss on digital assets.
GameStop Corp.GameStop uses cash and shares to retire notes, diluting shareholders and reducing cash reserves.
eBay IncGameStop's net income includes gains from eBay derivative and equity investment, indicating positive financial impact from eBay holdings.
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