GameStop CEO was on CNBC and acted like a total dick the entire time after they asked him how financing would work for this deal [1]. It appears that he's upset that Squawk Box previously stated that GameStop is a bankrupt meme stock. This is probably one of the funniest CNBC interviews I've seen.
GameStop makes $55.5B takeover offer for eBay
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Re: GameStop makes $55.5B takeover offer for eBay
#552Earlier quoted context omitted.
Basically a ponzi at that point
Bubble? Yes. Ponzi? No. The latter requires some element of deception/fraud. Strategy Inc. (formerly MicroStrategy) was basically something similar. They had $x worth of bitcoin in a vault, but were selling themselves for $2x.
Well they are raising capital to hand out in dividends on their preferred stock. So that's much closer.
Re: GameStop makes $55.5B takeover offer for eBay
#553The 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…
They would lose sellers in a heartbeat, myself included. The eBay fees are bad enough as it is, throw in whatever insane amount GameStop would take and it would squeeze everyone out.
eBay isn’t the same individuals selling one off things like it used to be. Sellers are established businesses.
Re: GameStop makes $55.5B takeover offer for eBay
#554Many people noticed the math doesn't add up, e.g. in the CEO's interview here [0]. Am wondering if they are betting on the stock going up because of the news so they would then be able to fund the deal. [0]: https://www.businessinsider.com/gamestop-ceos-awkward-interv...
I think Ryan handled that badly because he didn't believe the question was serious.
They're offering 50% cash and 50% stock. At an eBay valuation of 56B: 20B of cash will come from their creditor, TD Bank. 8B will come from GameStop itself. 28B will come in the form of stock from the resulting entity, which will own eBay and presumably have a valuation north of 56B.
The resulting entity may end up having 50% or more of it's equity allocated to the existing eBay shareholders. This is normal for a M&A where a smaller company buys a larger one.
Re: GameStop makes $55.5B takeover offer for eBay
#555Earlier quoted context omitted.
eBay has also started doing strongarm middleman things as well. If you list an item, it strongly "suggests" a price. Sounds innocuous, right? However, when every seller knows they would be stupid to list a product for less than the suggested price, that means that eBay is enacting a collusion process on their sellers to regulate prices for products sold on their platform. I don't think this is illegal in any way, but…
Yeah, I got fucked over by eBay and will never sell on there again. eBay let someone scam me out of $700. I sold a Mavic 2 Pro drone with 5 batteries. The whole process was a mess. Scammer initially complained that it didn't come with a CrystalSky tablet that was in one picture (that was only added AFTER after he had bid already and asked to see Flight Logs, and was explicitly disclaimed as not being a part of the pa…
Should have filed a police report. eBay will side with you and refund you. Had similar happen a few times and every time just required filling out a form in whatever city the item was sent to and attaching it to the dispute.
Re: GameStop makes $55.5B takeover offer for eBay
#556"He doesn't understand your question, CNBC" - https://www.reddit.com/r/wallstreetbets/comments/1t3m56f/he_...
Re: GameStop makes $55.5B takeover offer for eBay
#557Earlier quoted context omitted.
They’re called consignment stores and some have an online component (which can involve eBay or other similar marketplaces).
Yes, consignment stores have existed for a long time, but they aren't generally functional interfaces to eBay. If you want your stuff to sit on a shelf for the next few years, a consignment store is OK, I suppose. When I sell something, I usually want the item gone ASAP in exchange for a modest amount of money.
There’s a ton of eBay sellers doing consignment, usually for friends that just want to sell things but I’ve seen some much larger operations selling pallets worth of goods from stores not large enough to wholesale or liquidate.
Re: GameStop makes $55.5B takeover offer for eBay
#558Earlier quoted context omitted.
> GameStop is setup as a legal pawnshop in every state. So a pawnshop buying out eBay makes insane sense. It doesn't though. eBay could easily set itself up as a legal pawnshop in every state if it wanted to. It doesn't because there's no advantage to doing so. There are already third-party sellers in many areas who will take your physical merchandise and sell it on eBay in exchange for a cut. eBay doesn't need to en…
There's friction though, if the process is under one roof end-to-end, ebay can take 30-40% (15-20% today) of every transaction by just letting you dump your old stuff. Might even eat FB marketplace and CL.
It's hard to get lower friction (register a new account) and lower fee (0%) than Craigslist.
Re: GameStop makes $55.5B takeover offer for eBay
#559Earlier quoted context omitted.
You're conflating two things here. Yes, in 2021 GameStop did sell shares to raise cash in a dilutive way. [1] No, that is not being treated as profit or revenue. Gamestop had ~418 million in profit in 2025. [2] A fraction of that profit does come from interest income. Ignoring that (say to value the business separate from the cash) they still made ~110 million in profit. In my personal opinion (not financial advice)…
>A fraction of that profit does come from interest income. More than half of it came from interest income. Gamestop has been unable to grow revenue since Cohen took over, failed initiative after failed initiative. The only thing saving them is their meme stock nature and a legion of people willing to throw good money after bad allowing them to dilute shareholders to build a warchest. They have increased profit by clo…
Well hey, what do you think about them buying eBay? eBay seems to think a lot of the value is in verification - grading cards, authenticating watches, shoes, handbags. GameStop has a similar business in collectibles and could provide eBay with a physical footprint that would let a lot of that verification happen easier, in-store.
Re: GameStop makes $55.5B takeover offer for eBay
#560Many people noticed the math doesn't add up, e.g. in the CEO's interview here [0]. Am wondering if they are betting on the stock going up because of the news so they would then be able to fund the deal. [0]: https://www.businessinsider.com/gamestop-ceos-awkward-interv...
I think Ryan handled that badly because he didn't believe the question was serious. They're offering 50% cash and 50% stock. At an eBay valuation of 56B: 20B of cash will come from their creditor, TD Bank. 8B will come from GameStop itself. 28B will come in the form of stock from the resulting entity, which will own eBay and presumably have a valuation north of 56B. The resulting entity may end up having 50% or more…
"Normal" for M&A, and if you drink enough finance kool-aid it even makes sense, but then you step back, and go wait, no it doesn't!