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GameStop makes $55.5B takeover offer for eBay

bbc.co.uk

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Re: GameStop makes $55.5B takeover offer for eBay

#471

Post by Animats »

airstrike wrote: post #227
Animats wrote: post #117

Earlier quoted context omitted.

Yes. See [1] for an overview of how this works. When the SEC filing is made, we'll get to see how the deal is structured. The $20 billion from TD Securities becomes a debt obligation of the combined company. There's a tax break in equity to debt conversion, and a second tax break for carried interest. [2] There may be a preferred stock deal or debt refinancing so that TD gets their $20 billion back. Usually, the priv…

No, it's not a leveraged buyout

Sure it is. The acquirer is borrowing money for the buyout, and the debt will become a debt of the acquired/merged company. That, by definition, is a leveraged buyout.

Re: GameStop makes $55.5B takeover offer for eBay

#474

Post by mghackerlady »

TonyTrapp wrote: post #102
seydor wrote: post #79

I believe ebay should put itself up for sale on ebay instead.

Auction or "buy now" with price suggestion?

I once saw a pair of "very used" ready-to-rumble promotional boxers for bidding at $99 or buy it now for $1300

Re: GameStop makes $55.5B takeover offer for eBay

#475

Post by taeric »

WorldMaker wrote: post #462
taeric wrote: post #329

Earlier quoted context omitted.

I mean, if I'm allowed to just make up silly hypotheticals, I can easily justify anything. Say I raise money for a friend to buy a house and they proceed to rent it out to meth dealers. The friend is the one on the hook for the loans, of course; but would I not be on the hook for at least a reputation hit such that I can't do that again? Or do we think folks can get away with that sort of poor judgement forever?

In that sort of hypothetical the Mortgage bank is likely to take one look at your friend, see you with all the money for the down payment, and decide that you need to at least cosign the loan (if not be solely responsible). You would be on the hook for the reputation (and credit score) hit and certainly still paying off the rest of the loan or face foreclosure and possibly a criminal lawsuit for fraud. Which yeah, le…

Exactly, that is pretty much what I was aiming towards.

Re: GameStop makes $55.5B takeover offer for eBay

#476

Post by Eisenstein »

taeric wrote: post #429
coderintherye wrote: post #425

Earlier quoted context omitted.

That's soliciting, which is regulated at least for soliciting non-accredited investors.

Yes. That doesn't change my question, here. You can arrange to bootstrap another company. It could go bust in a way that you are not on the hook for any money, but you should be on the hook for the things you did. That is the entirety of my point. The hypotheticals being pushed on this thread have a foregone conclusion that the arranging party is completely free of any hit.

The hypotheticals seem to be in line with reality though. This business model works because the people who make money are the ones who are in control of whether to do it. Liquidating a large company in bankruptcy can get a lot of the money back for the investors while leaving a smoking ruin where it used to be generating economic value.

Re: GameStop makes $55.5B takeover offer for eBay

#477

Post by CobrastanJorji »

intuitionist wrote: post #390
whamlastxmas wrote: post #357

Earlier quoted context omitted.

The TLDR for people who don't intuitively understand why: existing shareholders are diluting their stake in the company by issuing new shares and getting money for those new shares. It's simply selling part of the company. Not profit.

Worth also pointing out though that if you can sell new shares above intrinsic value that is accretive to existing shareholders. Dilution isn’t always a bad word. (It’s bad for the people buying new shares.)

Well, partly it's an audience thing. Hacker News has a lot of folks who work at tech startups, and if you work at a tech startup, dilution is nearly always a very bad word for you.

Re: GameStop makes $55.5B takeover offer for eBay

#478

Post by mghackerlady »

reddalo wrote: post #213
idiotsecant wrote: post #167

Earlier quoted context omitted.

Why does it need a rewrite if it works great?

Because it works great as a platform, and because I've been using it for 20 years. But for a new user, it looks completely messy, with pages that are vastly different from each other and many sections that look exactly as they were in the early 2000's.

So does craigslist and I don't think I've ever heard people complain about it. Not everything needs to be a PWA, let websites be websites

Re: GameStop makes $55.5B takeover offer for eBay

#479

Post by rbtprograms »

JohnFen wrote: post #283

Gamestop is one of the companies that I refuse to do business with. eBay is a company that I am reluctant about, but use anyway. If this goes through, that will be the final straw that gets me to stop using eBay entirely. That would probably be for the best.

its a fun place to buy games though
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