ELI5: How does GME, with $10B in assets and $4B debt, buy Ebay, a company trading at $50B?
u/No_Cell6708 ·
Reddit — r/stocks
· May 02, 2026 at 02:00
· ⬆ 64 pts
· 💬 49 comments
| View on Reddit ↗
AI Summary
Summary
The post is a question about the mechanics of a hypothetical acquisition of eBay (EBAY) by GameStop (GME), given GME’s balance sheet ($10B assets, $4B debt) vs eBay’s $50B market cap.
The author is seeking an explanation of how a smaller company can finance a much larger acquisition (e.g., debt, stock dilution, or other deal structures).
Quality assessment: This is a well-posed question but not a researched thesis or trade idea; it is educational speculation, not DD.
Score64
Comments49
Upvote %92%
▶ Full Post Text
This is a genuine question. Sorry if the answer is obvious. EBAY made $2B+ on profit last year. They're current trading at around 45-50B market cap. How does GME make them a legitimate offer? I know this sort of thing must be possible because the recent Paramount/WB deal immediately comes to mind. I don't know the specifics of that deal but I'd assume it's a somewhat similar situation, in that one company is trying to buy one that's significantly larger.
Where does GME get the money to make an offer that ebay shareholders would want to accept? Will someone lend them the money? Dilution?
Please explain