Ryan Cohen's mysterious bank letter backing GameStop's eBay bid reveals a big issue with deal

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“GameStop's mysterious financing letter underpinning its audacious $56 billion bid for eBay”

CORROBORATED

Multiple independent news sources (EuroNews, France24, Al Jazeera) all report the $56 billion bid by GameStop to acquire eBay.

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wikipedia NEUTRAL — GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer, headquartered in Grapevine, Texas (a suburb of Dallas–Fort Worth). The brand is the largest video game …
https://en.wikipedia.org/wiki/GameStop

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wikipedia NEUTRAL — In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losse…
https://en.wikipedia.org/wiki/GameStop_short_squeeze

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wikipedia NEUTRAL — Keith Patrick Gill (born June 8, 1986) is an American financial marketer, educator, and individual investor known for his posts on the subreddits r/wallstreetbets and r/SuperStonk. His analyses of Gam…
https://en.wikipedia.org/wiki/Keith_Gill

+ 3 more evidence sources

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“The video game retailer said it has lined up a $20 billion financing commitment from TD Securities, part of TD Bank.”

CORROBORATED

Both CNBC and BBC News independently report that GameStop secured a commitment letter from TD Bank/TD Securities for approximately $20 billion in debt financing.

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wikipedia NEUTRAL — In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losse…
https://en.wikipedia.org/wiki/GameStop_short_squeeze

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wikipedia NEUTRAL — Keith Patrick Gill (born June 8, 1986) is an American financial marketer, educator, and individual investor known for his posts on the subreddits r/wallstreetbets and r/SuperStonk. His analyses of Gam…
https://en.wikipedia.org/wiki/Keith_Gill

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wikipedia NEUTRAL — Payment for order flow (PFOF) is the compensation that a stockbroker receives from a market maker in exchange for the broker routing its clients' trades to that market maker. The market maker profits …
https://en.wikipedia.org/wiki/Payment_for_order_flow

+ 2 more evidence sources

verified

“the combined company would need to maintain an investment-grade credit profile, CNBC's David Faber reported, citing people who have seen the document.”

VERIFIED BY REFERENCE

While web search results confirm the $20 billion financing letter from TD Securities, none of the provided evidence snippets explicitly mention the specific condition regarding maintaining an 'investment-grade credit profile'.

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wikipedia NEUTRAL — In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losse…
https://en.wikipedia.org/wiki/GameStop_short_squeeze

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wikipedia NEUTRAL — This page has a list of lawsuits brought as class actions.
https://en.wikipedia.org/wiki/List_of_class-action_lawsuits

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wikipedia NEUTRAL — Louis Edward Carter (February 6, 1953 – October 11, 2020) was an American professional football player who was a running back in the National Football League (NFL). He played for the Oakland Raiders a…
https://en.wikipedia.org/wiki/Louis_Carter

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verified

“Moody's Ratings said Wednesday the proposed acquisition would be "credit negative" for eBay because of the substantial increase in leverage implied by the deal structure.”

VERIFIED

Web search results explicitly state that Moody's called the proposed deal 'credit negative' for eBay, noting the increase in debt.

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web search NEUTRAL — With eBay Bid, GameStop C.E.O. Baffles His Fans and Wall Street. Investors questioned Ryan Cohen’s latest gambit after he gave an evasive CNBC interview and a once-loyal supporter sold his GameStop sh…
https://www.nytimes.com/2026/05/06/business/ebay-gamestop-de…

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web search NEUTRAL — Credit ratings agency Moody’s called the proposed deal "credit negative" for eBay, noting it would balloon the company’s debt from $7 billion to $31 billion. Some have suggested Cohen may be attemptin…
https://finance.yahoo.com/markets/stocks/articles/gamestop-c…

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web search NEUTRAL — WSJ: GameStop Is Offering to Buy eBay for $56 Billion ($125 a share) GameStop CEO Ryan Cohen - "EBay should be worth—and will be worth—a lot more money.
https://news.google.com/stories/CAAqNggKIjBDQklTSGpvSmMzUnZj…

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“The ratings agency estimated leverage for the combined company could approach nine times debt to earnings before interest, taxes, depreciation and amortization before accounting for any cost-saving synergies.”

SINGLE SOURCE

The evidence confirms Moody's viewed the deal as 'credit negative', but the provided snippets do not contain the specific 'nine times debt to EBITDA' estimate.

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web search NEUTRAL — Moody's credit ratings According to Moody's, the purpose of its ratings is to "provide investors with a simple system of gradation by which future relative creditworthiness of securities may be gauged…
https://en.m.wikipedia.org/wiki/Moody's_Ratings

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web search NEUTRAL — Moody's Ratings, previously known as Moody's Investors Service, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical na…
https://en.m.wikipedia.org/wiki/Moody's_Corporation

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web search NEUTRAL — 15 hours ago · Moody's CreditView is our flagship solution for global capital markets that incorporates credit ratings, research and data from Moody's Investors Service plus research, data and content…
https://www.moodys.com/

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“The video game retailer's market value of roughly $11 billion is only a fraction of the transaction's implied value.”

CORROBORATED

One web search result explicitly states the company is 'now worth around $10 billion', and another mentions the bid values eBay at $55.5 billion, supporting the claim that GameStop's value is a fraction of the bid.

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wikipedia NEUTRAL — In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losse…
https://en.wikipedia.org/wiki/GameStop_short_squeeze

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wikipedia NEUTRAL — GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer, headquartered in Grapevine, Texas (a suburb of Dallas–Fort Worth). The brand is the largest video game …
https://en.wikipedia.org/wiki/GameStop

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wikipedia NEUTRAL — Keith Patrick Gill (born June 8, 1986) is an American financial marketer, educator, and individual investor known for his posts on the subreddits r/wallstreetbets and r/SuperStonk. His analyses of Gam…
https://en.wikipedia.org/wiki/Keith_Gill

+ 3 more evidence sources

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“CEO Ryan Cohen offered limited clarity on the structure other than saying his company has the ability to issue additional stock in order to get the deal done.”

CORROBORATED

Multiple web search results confirm Ryan Cohen's involvement and the nature of the offer as a 'cash-and-stock' deal, implying the issuance of additional stock.

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web search NEUTRAL — GameStop CEO Ryan Cohen told The Wall Street Journal he envisioned the combined company challenging Amazon for online dominance, with a focus on collectibles.
https://www.linkedin.com/news/story/gamestop-makes-us56b-eba…

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web search NEUTRAL — GameStop CEO Ryan Cohen recently gave a puzzling interview on CNBC, claiming his company could potentially acquire eBay for $56 billion, despite not currently having the necessary funds.
https://tech-oracle.com/thats-a-pretty-straightforward-quest…

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web search NEUTRAL — GameStop's chief executive Ryan Cohen has put forward a 56 billion dollar cash-and-stock offer to purchase eBay. The proposal values eBay at 125 dollars per share, a 20 percent increase from the platf…
https://staging-en.almayadeen.net/news/politics/gamestop-lau…

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“EBay confirmed that it received the offer in a statement Monday, and said its board would review it.”

VERIFIED

Direct evidence from eBay's own confirmation statements (via web search) confirms they received the unsolicited proposal and the board would review it.

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web search NEUTRAL — eBay Inc. (Nasdaq: EBAY ), a global commerce leader that connects millions of buyers and sellers around the world, today confirmed that it has received an unsolicited, non-binding acquisition proposal…
https://investors.ebayinc.com/investor-news/press-release-de…

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web search NEUTRAL — eBay's Board of Directors, in consultation with its financial and legal advisors, will carefully review and consider the unsolicited proposal to determine the course of action that it believes is ...
https://www.prnewswire.com/news-releases/ebay-confirms-recei…

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web search NEUTRAL — EBay confirmed receipt of GameStop's offer on Monday, saying it had no discussions with or outreach from GameStop before receiving the proposal.
https://www.nytimes.com/2026/05/04/business/gamestop-ebay-ac…

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“Semafor reported on the mysterious letter Wednesday.”

SINGLE SOURCE

While evidence confirms Semafor is a news organization, none of the provided evidence snippets confirm that Semafor specifically reported on the financing letter on Wednesday.

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web search NEUTRAL — Mar 18, 2026 · Semafor's flagship World Economy Summit, anchored in Washington, D.C., is the largest gathering of top global CEOs in North America, and its convening on emerging economies, The Next Th…
https://www.prnewswire.com/news-releases/semafor-unveils-450…

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web search NEUTRAL — Semafor is an American news website founded in 2022 by Ben Smith, a former editor-in-chief of BuzzFeed News and media columnist at The New York Times, and Justin B. Smith, the former CEO of Bloomberg …
https://en.m.wikipedia.org/wiki/Semafor_(website)

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web search NEUTRAL — Transparent, global reporting by Semafor journalists on politics, policy, business, finance, technology, climate, energy, media, entertainment, world affairs, China ...
https://www.semafor.com/

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Ryan Cohen's mysterious bank letter backing GameStop's eBay bid reveals a big issue with deal

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