Prediction market traders are not confident in GameStop’s ability to acquire eBay, according to a deal launched Monday.
Karshi traders see only a 26% chance that GameStop will pull off a deal in 2026, but the total volume of new contracts was low at just over $2,000.
GameStop announced Sunday that it plans to acquire the online marketplace in a cash and stock deal that values the company at $55.5 billion. The assessment raised questions about how GameStop could fund its proposal. 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 reveal exactly how the company plans to finance the deal, instead reiterating the nature of the deal.
“We are making a half-cash, half-stock offer, with the ability to issue stock to close the deal, but full details of the offer are available on our website,” Cohen said. “Let’s see what happens.”
GameStop’s stock price fell nearly 8% on Monday following the proposal, while eBay’s stock rose more than 5.5%.
In Polymarket, traders were even less optimistic. Traders on the platform had given GameStop only a 15% chance of completing the deal.
—CNBC’s Yun Li contributed reporting
Disclosure: CNBC and Kalsi have a commercial relationship that includes a minority investment in CNBC.
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