GameStop (GME) was the poster boy of the meme stock rally in 2021, but when the craze fizzled out, shares began to witness an extended period of downtrend. In the last 52 weeks, GME stock has declined by roughly 21%.
Amidst the stock grind, however, GameStop recently submitted a non-binding proposal to acquire eBay (EBAY) at $125 per share in cash and stock. At the time of announcement, the offer implied a 46% premium to the closing price of EBAY stock. The news triggered a mixed reaction among market participants with concerns related to the credit stress on GameStop.
