First Step to Final Offer 5/05/26

Author

Brooks Gammill
May 05, 2026

Your weekly round-up of an M&A deal walkthrough, insightful market news summaries, technical quiz questions, and various internships, events, and diversity programs. A key resource to best prepare yourself for finance recruiting. If someone sent you the newsletter subscribe below!

CAREER OPPORTUNITIES

Class of 2028 Finance and Consulting Opportunities

  • Ziegler 2027 Investment Banking Summer Analyst - Senior Living Link

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  • Apollo Global Management 2027 Summer Analyst, Credit Trading Link

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  • Stifel 2027 Public Finance Summer Analyst - Multiple Roles and Locations Link

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To see c/o 2028 opportunities, click here: Class of 2028 Application Tracker

Class of 2027 Finance and Consulting Opportunities

TECHNICAL QUESTION OF THE WEEK:

How do you decide whether to use Equity Value or Enterprise Value when you create valuation multiples?

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MARKET NEWS

Record US Corporate Buybacks Provide S&P 500 with Crucial Support

Corporate America has announced $665 billion in share repurchases across S&P 500 companies in the first four months of 2026, the highest figure ever recorded for that period, according to data from Birinyi Associates. Full-year authorized buybacks are projected to reach $1.55 trillion, which would surpass last year's record and signals strong confidence in corporate earnings, revenue, and cash flow. Apple's recently approved $100 billion repurchase plan was among the most notable announcements. The surge in buybacks is providing a stabilizing floor for equity markets following the S&P 500's 10% gain in April — its strongest monthly performance since 2020 — as investors grow cautious heading into May, historically the third-worst month for the index. Analysts at Jefferies note that buybacks may also help offset any downward pressure on earnings stemming from the ongoing conflict in Iran. Notably, repurchase activity has shifted away from the technology sector, with cyclical sectors such as energy, financials, industrials, and materials accounting for 44% of buyback value despite representing only about a quarter of the index — a trend that analysts say could support broader market participation beyond large-cap tech.

Source: Bloomberg

M&A DEAL OVERVIEW

GameStop Makes Surprise $55.5 Billion Bid to Acquire eBay

Video game retailer GameStop has put forward an unsolicited $55.5 billion cash and stock offer to acquire e-commerce platform eBay, valuing the company at $125 per share — a $20 premium to its last closing price. CEO Ryan Cohen, who took the helm at GameStop in 2023, argued that eBay could be significantly more valuable under his leadership and potentially compete with Amazon. Cohen stated he would take the bid directly to shareholders if eBay's board declined, and proposed to receive no salary or bonuses, instead being compensated solely on the performance of the combined entity. He also pledged to cut $2 billion in costs within a year of closing, largely targeting eBay's sales and marketing division. To finance the deal, GameStop has secured a roughly $20 billion debt commitment from TD Securities. eBay said it would review the proposal, though analysts were largely sceptical — Morgan Stanley cited fundamentally different business models, while Bernstein questioned whether anything would materialise given GameStop's comparatively smaller balance sheet. Markets reflected that uncertainty, with eBay shares rising 5% on the news while GameStop fell more than 9%.

Source: BBC

LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:

Correct Answer: B, Equity Value remains unchanged, Enterprise Value increases by $50. — A company issues $100 in Preferred Stock to purchase $50 of PP&E. How do Equity Value and Enterprise Value change?

Explanation: Issuing $100 of preferred stock brings in $100 of cash, which increases equity value, but the company then uses $50 of that cash to purchase PP&E, leaving net cash up by $50. Preferred stock is typically treated more like debt in enterprise value, so EV increases by the full $100 from the issuance, but the additional $50 of cash offsets part of that increase. Net-net, enterprise value rises by $50. Equity value, however, remains unchanged because the increase from issuing preferred stock is offset by the fact that preferred sits above common equity and doesn’t benefit common shareholders directly.