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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

#701

Post by snapcaster »

59percentmore wrote: post #622
SwellJoe wrote: post #609

Earlier quoted context omitted.

A sinking company buying a healthy company several times larger and more profitable doesn't make sense. The eBay board and shareholders would be crazy to participate in this fantasy. GME shareholders are already known to be of questionable judgment, so whatever they do is SNAFU. So, it's not surprising GameStop would try something crazy, what's surprising is anyone is taking it seriously.

I don't know what your issue with Gamestop is, but calling it "a sinking company" is wildly inaccurate, bordering on delusion.

buddy the bears aren't the delusional ones here...

Re: GameStop makes $55.5B takeover offer for eBay

#702

Post by trollbridge »

turtlesdown11 wrote: post #588
trollbridge wrote: post #571

Earlier quoted context omitted.

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 physic…

A strong cash position business like that is effectively a finance sort of business, in other words, exactly the kind well positioned to go conduct an LBO.

Re: GameStop makes $55.5B takeover offer for eBay

#703

Post by trollbridge »

asdfasgasdgasdg wrote: post #668
mixologic wrote: post #642

Earlier quoted context omitted.

The meme investors can stay irrational long before gamestop gets a growth story. If they haven't given up on their get rich quick scheme that's lasted over five years now, I really don't think they're going to jump ship now. The sad part is that gamestop is offering 55 billion, yet only has 9 billion in cash. The only way they come up with that much capital to buy ebay is to dilute the existing shareholders to a poin…

I was assuming it was going to be an LBO? Surely they don't plan to raise the money in cash.

I suspect Cohen has a novel financial instrument in mind. After all, at some point someone invented the first LBO.

Re: GameStop makes $55.5B takeover offer for eBay

#704

Post by sakopov »

potsandpans wrote: post #583
sakopov wrote: post #551

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. [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.

Not trying to get into conspiracies, but about a month ago Michael Burry revealed that he opened a position in $GME which seemed very strange. Now with the news of a potential eBay acquisition I wonder if he's in on this pump and dump scheme if that's what it is.

Re: GameStop makes $55.5B takeover offer for eBay

#705

Post by snapcaster »

qaq wrote: post #538
brian-armstrong wrote: post #489

Earlier quoted context omitted.

What? Most (all?) platforms let you opt out of this, and you receive payment when your shares are borrowed. And shares are fungible, how would it matter if one share is borrowed by 10 people or by none?

“What? Most (all?) platforms let you opt out of this.” Genuinely didn’t know that appreciate you pointing it out. “Shares are fungible, how would it matter if one share is borrowed by 10 people or by none?” Lets hedge funds create disproportionate downward pressure

Why mess with all this shit unless you're trying to retroactively justify a really heavy bag you're holding.

If you invest in good companies making good profits you don't have to care about any of this stuff. Free yourself, you have nothing to lose but your bags

Re: GameStop makes $55.5B takeover offer for eBay

#706

Post by snapcaster »

flyingcircus3 wrote: post #667
59percentmore wrote: post #519

Earlier quoted context omitted.

Eh. The capital was provided by various share offerings and, most recently, a bond sale, which retail probably and definitely did not buy, respectively. But here's the fun part. All of those issuances were made during periods of weirdly high prices. The biggest one was this time 2 years ago. The price jumped to $80. Doesn't seem like much, but there was a share split in 2022, 4:1. Between that and the offerings, buyi…

There is too much overlap with the tropes found in communities who want to believe in aliens and interdimensional beings to take the Gamestop saga seriously. So many appeals to emotion and ignorance, and the investment in a particular outcome has made the reddit groups around this topic indistinguishable from people who are ride or die Trumpers impervious to the falsification of their bad ideas. There is no longer a…

>The festering wound of people like Ken Griffin effortlessly getting away with their crimes

You've fallen for it too, what "crimes" is he guilty of exactly?

Re: GameStop makes $55.5B takeover offer for eBay

#707

Post by nyeah »

xnx wrote: post #695
imtringued wrote: post #678

Earlier quoted context omitted.

You have a company "funded" with its own equity and now you turned it into a company exclusively made out of outside capital and an obligation to realize the terms of said outside capital. Before, you could have had bad years in-between the good years, now you're only permitted to have good years and by good years I mean years that honor the financing terms. When you understand this, you realize that functionally spe…

Why did the previous owners sell?

In theory, the high share price driven by the LBO offer.

Re: GameStop makes $55.5B takeover offer for eBay

#708

Post by turtlesdown11 »

trollbridge wrote: post #702
turtlesdown11 wrote: post #588

Earlier quoted context omitted.

>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 physic…

A strong cash position business like that is effectively a finance sort of business, in other words, exactly the kind well positioned to go conduct an LBO.

> A strong cash position business like that is effectively a finance sort of business

You are conflating companies that make a lot of cash (and therefore can afford debt service) to a company that has limited cash flow, but has a large pile of cash.

The shareholders would be best served by a special dividend of the cash. Management has shown zero ability to grow a business.

Re: GameStop makes $55.5B takeover offer for eBay

#709

Post by turtlesdown11 »

graemep wrote: post #407
59percentmore wrote: post #314

Earlier quoted context omitted.

It depends. If Gamestop is able to find the efficiencies that the CEO is claiming, EPS jumps between 50 and 100 percent. Gamestop shareholders get diluted down to owning a smaller piece of a much bigger earnings pie. That's if you don't engage in any conspiracy theories about how many shares retail traders really own (don't go down that rabbit hole). Suffice it to say, the Gamestop's price floor has gone up each time…

True, that is why I said "very possibly". The market seems mildly positive about i so far. its a big promise. Is Ebay really THAT badly run that they can find such efficiencies?

> Is Ebay really THAT badly run that they can find such efficiencies?

Well, we should point out that Gamestop hasn't grown their own business - they've lost 50% of revenue since 2020. Why would anyone trust that management to "turn around" another business?

Re: GameStop makes $55.5B takeover offer for eBay

#710

Post by qaq »

snapcaster wrote: post #705
qaq wrote: post #538

Earlier quoted context omitted.

“What? Most (all?) platforms let you opt out of this.” Genuinely didn’t know that appreciate you pointing it out. “Shares are fungible, how would it matter if one share is borrowed by 10 people or by none?” Lets hedge funds create disproportionate downward pressure

Why mess with all this shit unless you're trying to retroactively justify a really heavy bag you're holding. If you invest in good companies making good profits you don't have to care about any of this stuff. Free yourself, you have nothing to lose but your bags

I am not messing with these just looked really fkd up how Citadel was able to abuse it's position
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