Wedbush skeptical on GameStop's eBay bid as financing gap looms

M&A · Partnership
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Summary · why it matters

Wedbush Securities analyst Michael Piccolo expressed skepticism that GameStop's bid for eBay will succeed on current terms. Piccolo noted that eBay trades well below the implied $125 per share offer price, signaling the market assigns low odds to a deal closing, and identified the financing gap as the core obstacle, with GameStop's roughly $9 billion in cash plus a conditional $20 billion TD facility against a target nearly $50 billion in size. He suggested CEO Ryan Cohen's next move is more likely an exchange offer or direct appeal to eBay holders rather than a materially higher price. Piccolo advised GameStop shareholders to stay on the sidelines pending concrete financing details, while viewing eBay as reasonably valued on standalone fundamentals with modest optionality if Cohen sweetens terms, though warning of downside risk if Cohen abandons the pursuit.

Impact on stocks 2

Consumer Discretionary▼ · 2 stocks
GameStop Corp.
GME
▼ NegativeCapitalrelevance

Analyst skeptical of GameStop's eBay bid due to financing gap, advises shareholders to stay on sidelines pending concrete financing details.

eBay Inc
EBAY
± MixedCapitalrelevance

Analyst views eBay as reasonably valued on standalone fundamentals with modest optionality if Cohen sweetens terms, but warns of downside risk if pursuit abandoned.

Off-coverage companies 1

Wedbush Inc.Private± Mixed
relevance

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