GameStop Corp. (NYSE:GME) stock slid by more than 10% during Monday’s premarket session.
The decline came as investors continued to assess the company’s aggressive 9.8% stake build in eBay Inc (NASDAQ:EBAY) and Wall Street’s skepticism toward CEO Ryan Cohen’s broader takeover ambitions.
Nasdaq futures are up 0.35% while S&P 500 futures have gained 0.49%.
GameStop on Monday agreed to exchange about $1.4 billion of convertible senior notes for Class A common stock, allowing the company to reduce long-term debt without using cash.
GameStop Swaps Notes For Shares
GameStop entered privately negotiated exchange agreements with certain holders of its 0.00% Convertible Senior Notes due 2030 and 0.00% Convertible Senior Notes due 2032.
The holders will exchange about $400 million of 2030 notes and $1.0 billion of 2032 notes for shares of GameStop common stock.
The company will not receive cash proceeds from the stock issuance.
Debt Reduction Deal Set For September
After the transaction closes, GameStop will cancel the exchanged notes and reduce outstanding long-term debt by about $1.4 billion. The company will still have about $1.1 billion of 2030 notes and $1.7 billion of 2032 notes outstanding.
GameStop expects the exchange to close on or around September 23, 2026, subject to customary conditions.
The number of shares issued will depend partly on the average volume-weighted average price of GameStop’s stock over a 35-trading-day reference period starting August 3, 2026, subject to a per-share price floor.
GameStop said participating noteholders may buy or sell common stock or enter into derivative transactions to hedge or unwind their positions, which could materially affect the market price of the common stock or the notes.
The company held $4.17 billion in long-term debt as of May 2.
Earnings & Analyst Outlook
GameStop offers games, collectibles, and entertainment products through its stores and e-commerce platforms. Its lineup spans hardware and accessories (including new and pre-owned consoles), software (new and pre-owned games), and digital items like in-game currency and downloadable content.
Looking further out, the next major catalyst for the stock arrives with the September 8, 2026 (estimated) earnings report.
- EPS Estimate: 6 cents (Down from 25 cents YoY)
- Valuation: P/E of 16.2x (Indicates fair valuation)
Top ETF Exposure
- VanEck Social Sentiment ETF (NYSE:BUZZ): 3.08% Weight
- Texas Capital Texas Equity Index ETF (NYSE:TXS): 2.58% Weight
Significance: Because GME carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
GME Price Action: GameStop shares were down 11.14% at $19.30 during premarket trading on Monday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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