Steve Eisman said eBay Inc. (NASDAQ:EBAY) will “of course” reject GameStop Corp.‘s (NYSE:GME) $56 billion takeover offer.
The take echoes Michael Burry, who sold his entire GameStop stake last week and posted “never confuse debt for creativity” to his Substack.
eBay is roughly four times larger than GameStop by market cap, which makes Ryan Cohen‘s half-cash, half-stock pitch at $125 per share a stretch even with TD Securities‘ $20 billion “highly confident letter” backing the financing.
The Math Does Not Work
“The odd thing about this potential deal is that eBay is four times larger than GameStop,” Eisman said on the Real Eisman Playbook.
eBay’s board has questioned Cohen’s ability to deliver a binding, actionable proposal. Baird analyst Colin Sebastian put the odds of success at “relatively low” …
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