Summary
- GameStop submitted a non-binding offer to acquire eBay for $125 a share, valuing the deal at $55.5 billion.
- GameStop plans to use about $9.4 billion in cash and liquid assets and as much as $20 billion in external financing to fund the acquisition.
- The company could sell Bitcoin holdings worth about $368 million, or roughly 4,700 BTC, and whether it keeps them as a long-term asset remains a key variable if the deal is completed.
Forecast Trend Report by Period
GameStop Corp., the US video-game retailer, is pursuing an acquisition of eBay Inc., drawing attention to how it may use its Bitcoin holdings.
CoinDesk reported on May 5 that GameStop submitted a non-binding proposal to acquire eBay for $125 a share, valuing the deal at $55.5 billion. The offer represents a premium of about 46% to eBay’s share price in early February.
GameStop plans to fund the transaction with about $9.4 billion in cash and liquid assets, along with as much as $20 billion in external financing.
The financing plan has raised the possibility that the company could sell Bitcoin holdings worth about $368 million. Ryan Cohen, GameStop’s chief executive officer, has previously left open the possibility of selling crypto assets to fund a large acquisition.
GameStop currently holds about 4,700 BTC. It recently transferred part of that position to Coinbase Prime and has been using an options strategy to generate returns.
If the acquisition is completed, GameStop would expand beyond its game-distribution business into a major e-commerce platform. Whether it keeps Bitcoin as a long-term asset or uses it to help finance the deal remains a key variable.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
