Reminds me of Sierra On-Line being acquired by CUCk International in 1996.
That was a sad story. Al Lowe talked about it a couple of years ago on a German podcast.
GameStop makes $55.5B takeover offer for eBay
121–130 of 731 posts
Re: GameStop makes $55.5B takeover offer for eBay
#122Earlier quoted context omitted.
Wouldn’t that debt knock down the market cap as much as the value Otherwise take out a $20b loan and put it in the bank. Assets increase $20b, job done.
There is precedent for this kind of trickery being played. For example, Honeywell acquired Garrett AiResearch, a well known manufacturer of turbochargers for combustion engines, through a series of mergers. Later on, it loaded them up with debt (over $1.5 billion, mostly asbestos related indemnity obligations from other parts of the business), before spinning them out as an independent entity again. Two years later,…
So you mean...marrying someone but transfer all the personal debt to the others, then divorcing so that I have no responsibility whatsoever? Not even an obligation to settle for the debt just like disappeared through an expired relationship?
Re: GameStop makes $55.5B takeover offer for eBay
#123Important background: https://investor.gamestop.com/news-releases/news-details/202... CEO gets paid "only if GameStop achieves a market capitalization of $20 billion." Buying a $55bn company would certainly achieve that quickly. I'm not sure how they'd manage that (buy with what? Memes?), other than the should-be-illegal process of putting debt on the acquired company's balance sheet.
> other than the should-be-illegal process of putting debt on the acquired company's balance sheet.
This is silly. No different than buying a house w/ borrowed money based on using that house as collateral.
Banks aren't stupid. If it's very likely to fail and the interest doesn't cover the risk, banks won't risk. There's typically no upside to banks. At best they get their interest and at worst they lose everything.
Re: GameStop makes $55.5B takeover offer for eBay
#124Is this going to turn Gamestop stores into something like those "sell it on Ebay" stores?
Re: GameStop makes $55.5B takeover offer for eBay
#125Can we please not? eBay is one of the few places I still enjoy on the web.
Re: GameStop makes $55.5B takeover offer for eBay
#126Re: GameStop makes $55.5B takeover offer for eBay
#127GameStop 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…
man, those GME bagholders are gonna love diluted shares.`
They can sell now and pocket some extra money. What's not to like?
Re: GameStop makes $55.5B takeover offer for eBay
#128ebay is still "old internet", and genuinely useful and well built. enshittification is incoming...
Have you used eBay in the last few years? It's awful for sellers and awful for buyers. This is coming from somebody who buys on eBay twice a month on average.
Re: GameStop makes $55.5B takeover offer for eBay
#129Important background: https://investor.gamestop.com/news-releases/news-details/202... CEO gets paid "only if GameStop achieves a market capitalization of $20 billion." Buying a $55bn company would certainly achieve that quickly. I'm not sure how they'd manage that (buy with what? Memes?), other than the should-be-illegal process of putting debt on the acquired company's balance sheet.
> other than the should-be-illegal process of putting debt on the acquired company's balance sheet. This is silly. No different than buying a house w/ borrowed money based on using that house as collateral. Banks aren't stupid. If it's very likely to fail and the interest doesn't cover the risk, banks won't risk. There's typically no upside to banks. At best they get their interest and at worst they lose everything.
It is different. You need somewhere to live. Buying a second home with what would presumably need to be at least a 90℅ mortgage is at best questionable.
Re: GameStop makes $55.5B takeover offer for eBay
#130Earlier quoted context omitted.
Wouldn’t that debt knock down the market cap as much as the value Otherwise take out a $20b loan and put it in the bank. Assets increase $20b, job done.
There is precedent for this kind of trickery being played. For example, Honeywell acquired Garrett AiResearch, a well known manufacturer of turbochargers for combustion engines, through a series of mergers. Later on, it loaded them up with debt (over $1.5 billion, mostly asbestos related indemnity obligations from other parts of the business), before spinning them out as an independent entity again. Two years later,…
Perplexity wants to buy Google Chrome vibes.