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GameStop makes $55.5B takeover offer for eBay

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Re: GameStop makes $55.5B takeover offer for eBay

#342

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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

Yes, exactly. In fact there were some ebay "helper" companies that made a go of it in the early 2000's. They went out of business because it doesn't add enough value. USPS created Media Mail and flat rate boxes, and UPS stores are found in nearly every community. They handle the hard part (shipping) well enough. The only thing I can think of is Gamestop positioning to become a clearing house for fan swag or gaming it…

It disgusts me how eBay sellers abuse the US Post Office by stealing supplies. It’s one way to guarantee I never buy from someone again.

Re: GameStop makes $55.5B takeover offer for eBay

#343
post #263

The 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…

eBay is dying, new competitors are being created constantly, and the big ones like Poshmark are getting more North American buyers and sellers. eBay has barely grown since their post covid slump Maybe eBay survives as an international site but even at that point, with $20B in debt this will just follow the regular PE playbook of shutting down after many layoffs and pivots The entire concept of, "I have $1,000 in the…

Who should take out the loan if not the new company? The old company? What would be the difference?

Re: GameStop makes $55.5B takeover offer for eBay

#344
post #115

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The end of your post negates the first line of it.

Its just financial engineering. But his mention that it is a form of options is laughable. Thats not what is going on here.

Buying calls before a credible buyout pitch is a pretty standard strategy -- good leverage, what's laughable here?

Re: GameStop makes $55.5B takeover offer for eBay

#345

Earlier quoted context omitted.

Can you tell me where your local eBay fulfillment center is? I can tell you where my local Gamestop is (no, not that one, the other one).

No, why does it matter? I also don't know where my local GameStop is since the few by me closed a couple years ago :P Plenty of stuff on EBay offers me 2 day shipping clearly via fulfillment centers, as far as I'm concerned that's all that matters. Do you think the addition of GameStop stores would mean EBay can offer faster shipping than that on a significant number of items?

You asked what could be improved with Gamestop. Public knowledge of Gamestop locations is a boon if people don't know where your existing fulfillment centers are.

Re: GameStop makes $55.5B takeover offer for eBay

#346
post #315
post #303

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There is a long practice of having cosigners on home loans. This feels basically like that. Which, granted, if you don't like the idea of establishing a company to take on loan responsibilities, I am not trying to offer a defense of that. Was a legit question of how you would structure it so that this is illegal, but home/auto loans are not.

A cosigner is different than what's happening in leveraged buy outs. A Cosigner is financially responsible if the debtor cannot pay back their portion of the loan. In a Leveraged buyout the purchaser does not take on financial liability for the debt, that is all placed on the company being purchased. This means that if the purchaser isn't even the cosigner in this scenario; the company being purchased is the sole ent…

Fair, but the nefarious scenarios people are talking about should at least be a major reputational hit for the people that did the fund raising. We are literally describing a ton of value getting destroyed. Someone is taking that hit.

Re: GameStop makes $55.5B takeover offer for eBay

#347
post #262

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> and then they list it on eBay and turn a bit of a profit with a local pickup option available Sort of wondering why nobody did this already. I know that the better charity shops do this with rare and unusual books/records. The UK equivalent CeX has an online offering through webuy.com, which appears to be a Chinese owned multinational.

This is called consignment and is an industry unto itself, usually for antiques since you need a lot of space. You give them your goods and they sell them. You get a cut if they actually sell. I'm surprised nobody has really mentioned this in the thread. Does anybody remember the "trade in anything" day GameStop just had? https://www.usatoday.com/story/money/2025/12/08/gamestop-tra... Obviously they're going to need…

> Obviously they're going to need to liquidate a lot of this stuff.

If you read online employees have talked about how they donated it or threw it all out, presumably there is very little of that stuff left at this point (and probably nothing left of any real value).

Ex: https://www.reddit.com/r/GameStop/comments/1qceolz/what_did_...

Re: GameStop makes $55.5B takeover offer for eBay

#348

Earlier quoted context omitted.

You mean leverage/borrowing? Pretty time tested mechanism of risk taking in free markets.

Moving money from one pile to another so that you can skim a little off the top is imaginary work and is slowly destroying the west

That’s not what’s slowly destroying the west but I understand that I must keep my remarks on this Marxist-friendly website very tame.

Re: GameStop makes $55.5B takeover offer for eBay

#349

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Liquid Assets: May 2020: $570.3 million Jan 2026: $9.013 billion

Who would down vote this? It’s true. Can people here really not keep their emotions in check enough to admit clearly obvious facts?

> Who would down vote this? It’s true.

It's not an answer to the question of a turnaround, and therefore low quality information? How much you have in assets does not correlate with the ongoing success of the business. Examining the day to day business of Gamestop and excluding the memestock shenanigans leaves a very bad business.

The core business has declining revenue - net sales 2016 $8.6b, 2025 $3.5b and still in decline. Cash flow from operations also continues to shrink.

Store footprint has shrunk.

The underlying business stinks, even if they made a ton of money selling stock, they haven't done anything significant to halt the spiral.

To the poster below asking if I'm drunk. Please provide some sort of revenue citation to 18x? https://stockanalysis.com/stocks/gme/revenue/

Re: GameStop makes $55.5B takeover offer for eBay

#350

Earlier quoted context omitted.

GameStop has a standing approved agreement to issue up to a billion new shares. If you read the offer you will see it is 50% financed by GameStop stock. They threw him a hardball today in his cnbc interview on this topic. $GME stock value would plummet short term, but the combined company would revalue much higher. Current Gamestop shareholders would be diluted. They would own, proportionally, a much small slice of t…

If his choice is between not getting paid due to not meeting targets, and getting paid in diluted stock, then it’s straightforward enough.

He has a massive stake in Gamestop outside of this pay package. The loss from diluting his massive accumulated position is not worth the bonus unless he thinks the price will recover long term.
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