Trump Tests Plan to Reopen Strait; GameStop's $56 Billion eBay Takeover Offer

Today's top stories, with context, in just 15 minutes.

On today's podcast:

1) President Trump said the US will help ships stranded in the Persian Gulf transit the Strait of Hormuz, describing it as a “humanitarian gesture” and testing his ability to restore traffic through the strategic waterway for the first time since the war with Iran began. The operation, dubbed Project Freedom, was set to begin on Monday with the US military pledging to provide support, including the use of guided-missile destroyers, aircraft and drones. “The Ship movement is merely meant to free up people, companies, and Countries that have done absolutely nothing wrong — They are victims of circumstance,” Trump wrote late Sunday in a social media post. “If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully.” The plan has left shipping executives perplexed, with few details provided by the president. Iran’s military, after Trump’s announcement, said US forces would be attacked if they entered the Strait of Hormuz, according to a statement carried by Iranian broadcaster Press TV.

2) Transportation Secretary Sean Duffy said he doesn’t think the US government needs to provide financial lifelines for now to other low-cost carriers, following the collapse of Spirit Aviation Holdings Inc. “At this point, I don’t think it’s necessary,” he said during a press conference Saturday at Newark Liberty International Airport. “They do have access to cash.” Duffy spoke hours after Spirit ceased operations, leaving passengers and employees stranded across the US. Earlier in the day, he announced measures to support those passengers, saying several carriers including United Airlines Holdings Inc., Delta Air Lines Inc., Southwest Airlines Co., American Airlines Group Inc. and JetBlue Airways Corp. agreed to cap prices or reduce fares for customers impacted by the shutdown.

3) GameStop Corp. is proposing to buy eBay Inc. for about $56 billion in cash and stock, a bold attempt by Ryan Cohen to take over a storied e-commerce name several times larger. The gaming retail chain offered $125 per share in cash and stock for the online marketplace, or about a 20% premium to its Friday close. GameStop, which built a roughly 5% stake in eBay, said it’s secured an initial, non-binding “highly confident letter” from TD Bank to provide about $20 billion of debt financing. In a memo to investors Sunday, Cohen’s company pledged to find some $2 billion of annual savings within 12 months of closing. The takeover bid follows the surprising ascent of GameStop, a chain of video game outlets that shrank its brick-and-mortar footprint after gamers increasingly bought software in digital stores. In 2021, it became the center of a retail-investor frenzy. Michael Burry, the Scion Asset Management head who rose to prominence after a winning wager against mortgages ahead of the 2008 financial crisis, helped fuel GameStop’s rally by taking a bullish stance on the firm around 2019.

See omnystudio.com/listener for privacy information.