Traders are doubtful Cohen’s GameStop can pull off monster eBay acquisition
Traders in prediction markets are unsure of GameStop’s ability to take over eBay, according to contracts filed Monday.
Investors in Kalshi give GameStop just a 26% chance of making the acquisition in 2026, but total trading volume on the new contract was low at just over $2,000.
GameStop announced Sunday that it is moving to acquire the online marketplace in a cash and stock deal that values the company at $55.5 billion. This valuation raised questions about how GameStop could finance its offering. The video game retailer has a market capitalization of just under $11.9 billion.
Appearing on CNBC’s “Squawk Box,” GameStop CEO Ryan Cohen did not disclose exactly how he plans to finance the deal, instead reiterating the structure of the transaction.
“We are offering a half-cash, half-stock offering and have the ability to issue stock to complete the deal. However, full details of the offer are on our website,” Cohen said. “We’ll see what happens.”
In response to the proposal, GameStop’s shares fell nearly 8% on Monday, while eBay rose more than 5.5%.
At Polymarket, traders were even less optimistic. Investors on this platform gave GameStop only a 15% chance of completing the acquisition.
— CNBC’s Yun Li contributed reporting
Disclosure: CNBC and Kalshi have a business relationship that includes a minority investment in CNBC.
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