GameStop might issue additional stock to complete its $55 billion takeover of eBay amid

skepticism from economists about whether the video game retailer could afford to acquire

the company whose market value is more than double GameStops.

GameStop CEO Ryan Cohen told CNBC on Monday the video game retailers half cash, half stock bid for eBay, may rely on issuing stock, or the process in which a company creates and gives new shares of itself to complete a deal instead of paying cash.

GameStop has yet to discuss the bid with eBay's management after publicly

announcing its offer on Sunday, Cohen said. Morgan Stanley analyst, and a note last week

before GameStop's offer was made public, said the broader market would be, quote, skeptical

of a potential deal's feasibility. Issuing stock may dispel concerns from economists about GameStop's ability to fund the offer,

after Bernstein analysts wrote in a note that the retailer faced financing challenges,

including GameStop's smaller balance sheet and the debt and equity required to buy eBay,

adding they would be, quote,

more surprised if anything became of it. Big Short investor Michael Burry, who has lauded GameStop's

financial turnaround with Coen as CEO, wrote on his substack he was concerned about how GameStop

would be able to acquire eBay, whose $55 billion

valuation under GameStop's offer far exceeds the video game retailer's $11.4 billion market

cap as of Monday. Shares of eBay soared by 5.7% in early trading on Monday, pacing the

stock's largest intraday gains since a 9.8% surge

in January of 2025.

eBay's market valuation has climbed by nearly $20 billion over the past year, driven

by a 55.6% surge in its share price.

A significant portion of this growth, over 25%, occurred this year, following a rally sparked

in February.

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