GameStop is going to acquire BestBuy
GameStop makes $55.5B takeover offer for eBay
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Re: GameStop makes $55.5B takeover offer for eBay
#162[deleted]
Re: GameStop makes $55.5B takeover offer for eBay
#163[dead]
Re: GameStop makes $55.5B takeover offer for eBay
#164Earlier quoted context omitted.
yeah, their shops arnt sized to do much more than UPS style package movement. I dont see it as a good value, but it's the only thing I see as a synergy. Otherwise it's just more garbage capitalism.
> garbage capitalism. How is this defined?
[deleted]
Re: GameStop makes $55.5B takeover offer for eBay
#165Important 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.
> Banks aren't stupid.
If they can gamble with other people’s money then why won’t they.
If they can get rid of those liabilities by offloading them in a hidden way why wouldn’t they.
If it all collapses and the government bails Them out, oh well.
Re: GameStop makes $55.5B takeover offer for eBay
#166Earlier quoted context omitted.
They can sell now and pocket some extra money. What's not to like?
you think all the bagholders are in at the current price?
If they didn't like the current prospects they can bail at a profit.
If they do like them they have no excuse if things go south.
Re: GameStop makes $55.5B takeover offer for eBay
#167Re: GameStop makes $55.5B takeover offer for eBay
#168Re: GameStop makes $55.5B takeover offer for eBay
#169Earlier quoted context omitted.
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?
Welcome to late stage capitalism
Re: GameStop makes $55.5B takeover offer for eBay
#170Earlier quoted context omitted.
They already increased total number of stock by +39% in last 12 months, GME will squeeze the last penny from those people.
… and the stock has not dropped 39%, in fact it’s trading about where it was a year ago. Shareholders have been content to let Cohen add to the balance sheet, adjust operations and make a large move. This is one such move. And GME is up 5+% in pre trading, so shareholders are generally positive about this idea.
If Cohen's "large move" was to buy EBay, investors could have done that themselves. They would have gotten a better deal on shares in the new company. Also, they'd be up 50% over 12 months. Partly because Cohen "adding to the balance sheet" has meant dilutions, and there will be more for this deal.