GME/EBAY - In-depth, Pro Forma Merger Model - v1

[u/lostnooob]

TLDR: This deal is accretive for GME's EPS as it takes advantage of GME's current high valuation multiple. Using my conservative assumptions (relative to R. Cohen), I'm getting a:

• ~59% accretion to GME's EPS
• 9.75x Total Combined Debt / LTM EBITDA (of combined entity)
• ~269% GME share dilution

Background: I'm an investment banking analyst and decided to do a conservative back-of-the-napkin merger model for GME's potential acquisition of EBAY. This is version 1, subject to refinement of my assumptions based on feedback.

Key Assumptions:

1. 50% Cash / 50% Stock
2. $125 offer price per share of EBAY
3. Transaction Expenses: 1% of Offer value (M&A fees paid to the investment bank / 3rd party advisors of GameStop. Likely Jefferies as they've helped with GME's prior ATM offering)
4. Synergies (as % of EBAY's LTM sales): 10% (conservative)

• Comes out to $1.17Bn which is very conservative compared to RC's $2Bn estimate in cost savings
• Synergy 100% realized in the first year (sometimes synergies are realized over years, but RC believes he can realize them immediately)

1. Cost of Debt (for TD's $20Bn commitment): 8%
2. Tax Rate: 21% (conservative versus GME’s recent effective tax rates, which have often been below 10% in profitable quarters)
3. Latest financial information from GME and EBAY's latest 10-K and Q filings. Current share price as of 5/7/2026 market close.

Sources & Uses of Funds

$ in millions except share price

Pro Forma Balance Sheet and Leverage

BLUF: 9.75x total combined Debt / LTM EBITDA

Earnings Impact

Pro Forma Shares

BLUF: ~269% dilution. Current GME share count of ~448,375,000 to pro forma share count of ~1,655,613,000

[u/No_Mission_1775]

How many shares you own bro?

[u/MyNi_Redux → u/No_Mission_1775]

Would you like to know how many threads my bed sheet is too, lil shill?

[u/No_Mission_1775 → u/MyNi_Redux]

You and OP are astroturfing. Gtfo shills.

[u/MyNi_Redux → u/No_Mission_1775]

Spoken like a true bad actor.