"GameStop's CEO Ryan Cohen skirted repeated inquiries about how the video games retailer could afford the deal, saying he didn't understand the questions. A letter published on GameStop's website outlines a half-cash, half-stock proposal to acquire eBay at $125 a share, using about $9.4bn in cash on hand, and a $20bn in potential debt financing from TD Securities."
"GameStop's market capitalization, valued at about $11bn, brings the total to around $40bn, $16bn short of what it offered in its unsolicited bid. Cohen said he had not had any conversations with eBay about the proposal, which eBay confirmed in a statement on Monday."
GameStop's shares fell more than 10% as questions arose regarding the financing of its $55.5bn bid for eBay. CEO Ryan Cohen avoided inquiries about the company's ability to afford the deal. GameStop proposed a half-cash, half-stock acquisition at $125 per share, utilizing $9.4bn in cash and $20bn in potential debt financing. The total valuation of GameStop was around $12bn, significantly less than eBay's worth of $46bn. Cohen stated he had not discussed the proposal with eBay, which confirmed receipt of the offer but withheld further comments.
Read at www.theguardian.com
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