Patrick Boyle On Finance The Dumbest Takeover Bid
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May 10, 2026 A wild recap of GameStop’s audacious $55.5B offer for eBay and why the numbers do not add up. A look at eBay’s comeback and GameStop’s fall from retail relevance. A breakdown of the financing, share-authorization hurdles, and odd incentive structures. Discussion of PR theatrics, skeptical investors, and whether this is strategy or spectacle.
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Cohen's CNBC Interview Wastellingly Evasive
- Ryan Cohen went on CNBC in a leather jacket to explain the offer and repeatedly replied "the details are on the website."
- Boyle describes the interview as evasive and compares the aesthetic to tech visionaries while noting its awkwardness.
The Financing Math Looks Plausible But Fragile
- The proposed funding mix is $9.4B cash, a $20B loan (via a 'highly confident' letter from TD), and $28B in new GameStop stock.
- Boyle emphasizes that each component is weaker than it appears on paper.
'Highly Confident' Letter Is Not Firm Financing
- The TD 'highly confident' letter is non-binding and historically such letters relied on reputational backing like Drexel in the 1980s.
- Boyle warns GameStop itself cannot support $20B of debt and the LBO would be secured against eBay's cash flows.
