From 24/7 Wall St. · Trey Thoelcke · · 50s
GameStop's eBay Deal Clock Ticks Down
GameStop's $4.9 billion eBay stake faces imminent expiration as warrants near October 30 deadline.
In brief
GameStop's $4.9 billion eBay stake faces imminent expiration as warrants near October 30 deadline. GameStop's acquisition of eBay hinges on stock price crossing $32 by October 30 or funding from existing cash. Originally reported by 24/7 Wall St..
GameStop Discloses eBay Stake
GameStop reported a $4.9 billion eBay stake in Q2 FY27 results.
“approximately 43.4 million shares of ebay common stock valued at approximately $4.9 billion”
Warrants Underwater
59 million warrants sit underwater with expiration on October 30.
“warrants distributed carry a $32.00 exercise price”
Stock Price Below Strike
GameStop trades at $22.76, below $32 strike price.
“gamestop trades at $22.76, up 25.0% over one month”
Acquisition Deadline
October 30 deadline to trigger warrant exercise or acquisition funding.
“a sustained move above $32 would signal the $1.9 billion warrant proceeds are in play”
Probability of Deal
Polymarket estimates 0.065% chance of acquisition by October 30.
“polymarket puts the probability of a gamestop-ebay acquisition at 0.065”
What Happens Next
GameStop must refile warrants or see stock cross $32 by October 30.
“absent that, acquisition funding must come from existing cash or new debt”
The one thing
GameStop's acquisition of eBay hinges on stock price crossing $32 by October 30 or funding from existing cash.
