Shocked that they didn't just offer eBay $2 like they did for literally everything I brought to trade in.
GameStop makes $55.5B takeover offer for eBay
581–590 of 731 posts
Re: GameStop makes $55.5B takeover offer for eBay
#582The 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…
> 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…
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Re: GameStop makes $55.5B takeover offer for eBay
#583GameStop 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. [1] https://youtu.be/Bmj2PaxX24E
I have to imagine that this performance was intentional and this guy is not just out of his mind.
Just find it difficult to imagine anything outside of market manipulation: either an eBay pump and dump scheme, or collusion to get investors to sell as the inflation comes down so activists can pick up more.
Re: GameStop makes $55.5B takeover offer for eBay
#584Earlier quoted context omitted.
>assuming the CEO of GameStop doesn't mess it up completely. This guy? https://x.com/i/status/2051303211668021478 Surely, he's a safe bet, no chance he will mess up this deal! /s
I watched that interview live this AM and was so confused. The CEO looked annoyed and pissed the entire interview. Kept answering questions with “it’s on our website [awkward silence]” It almost seemed like he was incredibly hung over and didn’t sleep last night. But I got the feeling he was being a jerk on purpose. Still don’t understand why though.
The only guess I have, other than him being drunk, hungover, or high, is that he didn't want to admit or talk about GME dilution to fund the deal.
Re: GameStop makes $55.5B takeover offer for eBay
#585The 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…
> Imagine being able to list your eBay items locally without having to have people needing to come to your house, or better yet, getting a cut of what you wanted up front since they're basically a pawn shop, and then they list it on eBay and turn a bit of a profit with a local pickup option available.
I kind of assumed there were already local businesses that already did this? Seems like a decent side-line for any drop-shippers out there. In any event, moving that activity into a local strip-mall would be super convenient for everyone.
Re: GameStop makes $55.5B takeover offer for eBay
#586GameStop 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. [1] https://youtu.be/Bmj2PaxX24E
I have to imagine that this performance was intentional and this guy is not just out of his mind. Just find it difficult to imagine anything outside of market manipulation: either an eBay pump and dump scheme, or collusion to get investors to sell as the inflation comes down so activists can pick up more.
I did some digging today and learned that he currently takes no salary and stands to make an unbelievable amount of money if he hits certain (pretty unreasonable apparently) benchmarks. I think it was $35billion. My very armchair guess here is that he’s just trying something incredibly loud, brazen, and ambitious because at this point what else can you do? They’ve been falling apart for years, the business has not turned around at all even after the wildly inflated shares they sold to get some liquidity.
He’s already rich and GameStop is falling apart, so really what’s the risk to him if it all goes under? May as well try a moonshot and move on. It’s not like anyone will hold him accountable for failing to turn around a ship that was already deemed sinking many years ago.
Re: GameStop makes $55.5B takeover offer for eBay
#587Earlier quoted context omitted.
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…
There's one of these near me in a shopping center with terminally low rents. I think the additional value add for these places is that a) they can help you price the item to move and b) they can wade through eBay support if things go wrong.
That sounds like a very low value add. So you’ll have some teenagers clicking on the eBay portal for me like I’ve never used a computer before?
Re: GameStop makes $55.5B takeover offer for eBay
#588Earlier quoted context omitted.
>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…
Not growing revenue yet being profitable seems far preferable to growing revenue yet having bigger and bigger net losses. Shareholders seem to agree, as the stock went from formerly around $2.50 to present day about $92 (accounting for splits), dispute the dilution.
>Not growing revenue
Not growing revenue would be one thing, they're shedding revenue at pace - 50% decline since 2020.
> Shareholders seem to agree
First, it's a meme stock. The market can remain irrational for long periods. Another way to analyze it - almost all of the market cap of ~$10b is the $9b in cash. The shareholder pricing tells you they value the business at it's cash assets.
Gamestop's business of physically selling video games, consoles, etc is a dying/dead industry. Nothing can change the trajectory of the market that is almost completely disappeared.
It's a Blockbuster or Tower Records, a dead business running on fumes and memestock valuation.
Re: GameStop makes $55.5B takeover offer for eBay
#589The 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 also has some very accurate data about market pricing for second hand goods and what categories are at greater risk of being returned, which reduces the risk of holding riskier items.
EDIT: regarding the CEO, you should find the interview where he’s challenged about funding.
Re: GameStop makes $55.5B takeover offer for eBay
#590Long-time ebay seller here. I'm seeing comments floating towards the top that are essentially positing that the physical GameStop locations can be used as hubs where people can buy or sell their stuff in general (especially items that are 'pick-up only'). A pawn shop, basically. Thing is, GameStop is, well, for videogames and videogame paraphernalia. It's not a general store. Doing this would turn them into a thrift…
I think a lot of people are missing that eBay bought TCG Player back in 2022. This would fold the TCG Player brand into GameStop. Many (most?) local game stores list their inventory on TCG Player. In addition to the physical stores themselves, GameStop would have their hand in nearly every digital trading card transaction. GameStop would own the TGC Player warehouses and inventory.
Tcgplayer is mostly a marketplace, I don't think physical presence does anything for them.