Famous grifter Ryan Cohen is back in business. Time to collect more money from reddit
Why not? They haven’t left him even as he’s done little but dilute them to stockpile cash.
GameStop makes $55.5B takeover offer for eBay
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Re: GameStop makes $55.5B takeover offer for eBay
#252Important 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.
>>> should-be-illegal process of putting debt on the acquired company's balance sheet This is a basically a leveraged buyout (LBO). All private equity works this way. Yes, it should be illegal, or at least heavily limited. I highly recommend this book: "Plunder: Private Equity’s Plan to Pillage America"
I mean, it is functionally the same as home loans? Would you be proposing a carve out that buying a house or car is ok this way, but nothing else?
Re: GameStop makes $55.5B takeover offer for eBay
#253Earlier quoted context omitted.
Selling is a taxable event
Only for individuals, isn't it? Mutual funds etc don't have to pay CGT on everything, do they?
It looks like mutual funds pass the gains, and the tax, onto those holding shared of the mutual fund.
> Because mutual funds are pass-through vehicles, they are required by law to distribute most of these gains to shareholders each year. These are called capital gains distributions.
Other types of funds don't necessarily have this problem, or lessen it.
> Holding mutual funds inside an IRA, 401(k), or Roth IRA shields you from annual tax bills.
> Index funds: Passive funds trade less frequently, leading to fewer gains.
> Tax-managed funds: Specifically structured to reduce taxable events.
> Exchange-Traded Funds (ETFs): Use an “in-kind” redemption mechanism that avoids triggering taxable sales.
Re: GameStop makes $55.5B takeover offer for eBay
#254Re: GameStop makes $55.5B takeover offer for eBay
#255Earlier quoted context omitted.
Cohen is already rich rich, his GameStop compensation doesn’t really matter much. The eBay acquisition could be a strategy to juice his compensation but I think it is much more likely he does believe that he can achieve his stated aims, which will financially benefit him much more in the long term.
If there's anything rich people famously hate, it's making more money.
Unlike poor people who are indifferent to money.
Re: GameStop makes $55.5B takeover offer for eBay
#256Earlier quoted context omitted.
Is that market really that large? That sounds very niche, but I don’t know the collectible world
Yes, so much so that cards that were sold at retail in 2024 after grading sold went from around $100 in cost to well over $1000 in 18 months, and this was me making the market. The prices have since 2.5x-ed on the same card (2024 Topps Chrome Sapphire Base #500 PSA 10). It's correcting a little, but a 10x rise on a card that is effectively not considered limited edition and most had placed in storage suddenly 10x and…
It's basically an offshoot of the same appeal of crypto/NFTs but you get something to look at, I guess, and the grading companies make good money off of it.
Re: GameStop makes $55.5B takeover offer for eBay
#257Re: GameStop makes $55.5B takeover offer for eBay
#258The original shorting of GameStop back in 2021 gave them a bit of a boost back into the green. While people were doing the GME to the moon, GameStop made more shares to sell, and paid off a bit of its debts, I think it made about a billion dollars in profit, they're still struggling, but it helped prolong their life. A friend of mine also pointed out and this made it click for me that it makes 100% sense, GameStop is…
I thought the point of eBay was to get rid of that middleman. Wouldn’t that be something eBay would have done at some point if they wanted to own a pawnshop? Not saying that cannot work but that doesn’t sound like a genius idea
Re: GameStop makes $55.5B takeover offer for eBay
#259The original shorting of GameStop back in 2021 gave them a bit of a boost back into the green. While people were doing the GME to the moon, GameStop made more shares to sell, and paid off a bit of its debts, I think it made about a billion dollars in profit, they're still struggling, but it helped prolong their life. A friend of mine also pointed out and this made it click for me that it makes 100% sense, GameStop is…
The part you’re almost touching on but not directly mentioning is the trading card and collectible marketplace.
GameStop would probably be gone by now despite the meme stock if it wasn’t for trading card games and other similar collectibles, and eBay is very involved in that market.
Re: GameStop makes $55.5B takeover offer for eBay
#260Important 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.
Taking a $20b loan from TD Bank + sitting on $9b CASH + GameStop stock for the rest. They’ve made an interesting proposal around using 1600 GameStop locations for fulfilment. Smart if they can make it work. Update: Numbers still don’t add to $55b - I think there’s a $14b shortfall. Not sure about how they are planning to fund that.
A company doesn't need $55bn to buy a $55bn company. They can issue new GME shares and exchange $EBAY for $GME. These are sometimes called "stock-for-stock" transactions