{"id":4265,"date":"2026-05-07T16:10:35","date_gmt":"2026-05-07T16:10:35","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/ryan-cohens-mysterious-bank-letter-backing-his-ebay-bid-reveals-a-big-issue\/"},"modified":"2026-05-07T16:10:35","modified_gmt":"2026-05-07T16:10:35","slug":"ryan-cohens-mysterious-bank-letter-backing-his-ebay-bid-reveals-a-big-issue","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/ryan-cohens-mysterious-bank-letter-backing-his-ebay-bid-reveals-a-big-issue\/","title":{"rendered":"Ryan Cohen&#8217;s mysterious bank letter backing his eBay bid reveals a big issue"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108303722\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108303722\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000412273\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">GameStop<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>&#8216;s mysterious financing letter underpinning its audacious $56 billion bid for <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">eBay<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> is emerging as a central issue in the proposed takeover, as questions mount over whether the deal is actually financeable.<\/p>\n<p>The video game retailer said it has lined up a $20 billion financing commitment from TD Securities, part of TD Bank. But a key condition attached to this letter could ultimately make or break the deal: the combined company would need to maintain an investment-grade credit profile, CNBC&#8217;s David Faber reported, citing people who have seen the document. <\/p>\n<p>Moody&#8217;s Ratings said Wednesday the proposed acquisition would be &#8220;credit negative&#8221; for eBay because of the substantial increase in leverage implied by the deal structure.<\/p>\n<p>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.<\/p>\n<p>That level of indebtedness would likely push the combined company below investment grade, potentially undermining a key condition attached to the TD financing package.<\/p>\n<p>The proposed takeover has raised immediate questions about how GameStop could fund a deal of that size. The video game retailer&#8217;s market value of roughly $11 billion is only a fraction of the transaction&#8217;s implied value.<\/p>\n<p>CEO Ryan Cohen offered limited clarity on the structure other than saying his company has the ability to\u00a0issue additional stock in order to get the deal done.<\/p>\n<p>EBay confirmed that it\u00a0received the offer\u00a0in a statement Monday, and said its board would review it.<\/p>\n<p>Semafor reported on the mysterious letter Wednesday. <\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"RegularArticle-GooglePreferredSource-5\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>GameStop&#8216;s mysterious financing letter underpinning its audacious $56 billion bid for eBay is emerging as a central issue in the proposed takeover, as questions mount over whether the deal is actually financeable. The video game retailer said it has lined up a $20 billion financing commitment from TD Securities, part of TD Bank. But a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3185,354,3186,365,3151,3147,3187,2704,3184,1094,2213],"class_list":["post-4265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-backing","tag-bank","tag-bid","tag-big","tag-cohens","tag-ebay","tag-issue","tag-letter","tag-mysterious","tag-reveals","tag-ryan"],"_links":{"self":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/4265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/comments?post=4265"}],"version-history":[{"count":0,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/4265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media\/4266"}],"wp:attachment":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media?parent=4265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/categories?post=4265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/tags?post=4265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}