GameStop makes $55.5B takeover offer for eBay • Hacker News Board

Re: GameStop makes $55.5B takeover offer for eBay

#11

Post by Eldt » Mon, May 04, 2026, 10:14 AM UTC

vasco wrote: post #3

The Gamestop CEO is an interesting character, he grew Chewy and sold it, did a massive play on Apple stock during the pandemic and used that to buy a 9% stake in Gamestop over time, rode the hype to accumulate $9B while turning the company around and closing stores that weren't profitable and making it a money making budiness again. And now they already own 5% of eBay on top. Along the way he says some ridiculous Tru…

He's a meme trader manipulating retailer investors, following Elon's footsteps

Re: GameStop makes $55.5B takeover offer for eBay

#12

Post by Lionga » Mon, May 04, 2026, 10:16 AM UTC

orlp wrote: post #7

GameStop doesn't have (even close to) $55.5B. Their offer from the letter is literally impossible: > Our offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock Even if you magically included all existing GameStop stock in the offer, it still would not comprise 50% of $55.5B. EDIT: looks like it's not impossible and I misunderstood. It's a proposed change of leadership with a $25B injection of c…

Have your ever heard of debt? They have a 20B line secured from TD.

Re: GameStop makes $55.5B takeover offer for eBay

#13

Post by orlp » Mon, May 04, 2026, 10:18 AM UTC

Lionga wrote: post #12

orlp wrote: post #7

GameStop doesn't have (even close to) $55.5B. Their offer from the letter is literally impossible: > Our offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock Even if you magically included all existing GameStop stock in the offer, it still would not comprise 50% of $55.5B. EDIT: looks like it's not impossible and I misunderstood. It's a proposed change of leadership with a $25B injection of c…

Have your ever heard of debt? They have a 20B line secured from TD.

Yes, that goes into the '50% cash' part of the offer. With a 20B credit line and 7.5B cash from their own coffers (which they claim to have, so let's believe them on their word there), you cover the cash portion.

The issue is the non-cash portion of the offer. They claim that the remaining 27.5B is covered by GameStop stock. But that's more than double the market cap of GameStop.

Re: GameStop makes $55.5B takeover offer for eBay

#14

Post by moomin » Mon, May 04, 2026, 10:20 AM UTC

Very specific corners of the internet are losing their minds right now.

Re: GameStop makes $55.5B takeover offer for eBay

#15

Post by ceejayoz » Mon, May 04, 2026, 10:20 AM UTC

orlp wrote: post #7

GameStop doesn't have (even close to) $55.5B. Their offer from the letter is literally impossible: > Our offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock Even if you magically included all existing GameStop stock in the offer, it still would not comprise 50% of $55.5B. EDIT: looks like it's not impossible and I misunderstood. It's a proposed change of leadership with a $25B injection of c…

Isn’t that just a https://en.wikipedia.org/wiki/Leveraged_buyout ?

Re: GameStop makes $55.5B takeover offer for eBay

#16

Post by TrackerFF » Mon, May 04, 2026, 10:21 AM UTC

So they want to pay half of that with a meme stock?

Re: GameStop makes $55.5B takeover offer for eBay

#17

Post by memaw12341234 » Mon, May 04, 2026, 10:22 AM UTC

Eldt wrote: post #11

vasco wrote: post #3

The Gamestop CEO is an interesting character, he grew Chewy and sold it, did a massive play on Apple stock during the pandemic and used that to buy a 9% stake in Gamestop over time, rode the hype to accumulate $9B while turning the company around and closing stores that weren't profitable and making it a money making budiness again. And now they already own 5% of eBay on top. Along the way he says some ridiculous Tru…

He's a meme trader manipulating retailer investors, following Elon's footsteps

those guys have a very strong track record of getting their way lately

Re: GameStop makes $55.5B takeover offer for eBay

#18

Post by maz1b » Mon, May 04, 2026, 10:22 AM UTC

Not a headline I ever thought I would see. Kinda crazy how meme stocks and retail hype has led to this.

Re: GameStop makes $55.5B takeover offer for eBay

#19

Post by Lionga » Mon, May 04, 2026, 10:22 AM UTC

orlp wrote: post #13

Lionga wrote: post #12

Earlier quoted context omitted.

Have your ever heard of debt? They have a 20B line secured from TD.

Yes, that goes into the '50% cash' part of the offer. With a 20B credit line and 7.5B cash from their own coffers (which they claim to have, so let's believe them on their word there), you cover the cash portion. The issue is the non-cash portion of the offer. They claim that the remaining 27.5B is covered by GameStop stock. But that's more than double the market cap of GameStop.

You understand that the gamestop stock would then be owning ebay, thus be worth Ebay + Gamestops Valuation?

Re: GameStop makes $55.5B takeover offer for eBay

#20

Post by Vespasian » Mon, May 04, 2026, 10:23 AM UTC

orlp wrote: post #13

Lionga wrote: post #12

Earlier quoted context omitted.

Have your ever heard of debt? They have a 20B line secured from TD.

Yes, that goes into the '50% cash' part of the offer. With a 20B credit line and 7.5B cash from their own coffers (which they claim to have, so let's believe them on their word there), you cover the cash portion. The issue is the non-cash portion of the offer. They claim that the remaining 27.5B is covered by GameStop stock. But that's more than double the market cap of GameStop.

Are they under any obligation to ground the value of their own stock or can a salesman simply claim that the "true" value of that stock is much much more than it currently seems to be?