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eBay Rejects GameStop's $56B Takeover as Not Credible

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Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#11

Post by SwellJoe »

Imustaskforhelp wrote: post #6
SwellJoe wrote: post #3

Any reasonable person could see this was a ridiculous clown show, put on by the ridiculous clown show meme stock company.

"Half stock, half cash": https://www.youtube.com/watch?v=NxD-KGsvPI0 (I couldn't believe myself at first seeing things like these happening and this clip in particular, how does one get millions of dollars for such an disastrously wild interview to me feels quite off to me)

The fact that a guy like this can rise to the level of CEO making millions pretty much sums up everything wrong with the world. I don't think I would trust that guy to make a sandwich.

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#12

Post by yalogin »

colechristensen wrote: post #5
tombert wrote: post #2

I really thought it was going to be the other way around. I am quite confident that if GameStop bought eBay, they would ruin it in the same way that K-Mart buying Sears ruined that company. I could be wrong, I'm not a business person, but it seems kind of obvious that a company like GameStop, whose current existence appears to be due to a weird short squeeze anomaly, is not a sustainable business.

Gamestop turning into an eBay storefront makes a lot of sense to me and this seemed to be a very rational step to take when the short squeeze anomaly left them with billions in the bank and a business model that no longer makes very much sense with physical game sales being eaten by digital-only sales along with the potential decline of the console. They already have the position of used buying and sales, extending t…

They still don’t have anywhere close to buying eBay.

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#13

Post by [deleted] »

cmiles8 wrote: post #10

Well if you’ve seen the CNBC interview with the GameStop CEO he couldn’t answer basic questions about the deal so the outcome here isn’t surprising. The interview was so bad the first time I saw it I thought it was some sort of satire bit. No, it was real and the commentators were literally speechless.

[deleted]

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#14

Post by boringg »

SwellJoe wrote: post #3

Any reasonable person could see this was a ridiculous clown show, put on by the ridiculous clown show meme stock company.

I mean they make a good point -- ebay isn't a serious company anymore. It really needs someone with a vision to rebuild it. That its limping along and executives are essentially bleeding a previously valuable internet asset dry is kind of sad.

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#15

Post by boringg »

tombert wrote: post #9
colechristensen wrote: post #5

Earlier quoted context omitted.

Gamestop turning into an eBay storefront makes a lot of sense to me and this seemed to be a very rational step to take when the short squeeze anomaly left them with billions in the bank and a business model that no longer makes very much sense with physical game sales being eaten by digital-only sales along with the potential decline of the console. They already have the position of used buying and sales, extending t…

I guess it comes to management. I agree that if GameStop were basically rebranded as eBay brick and mortar stores, that might work. I guess I just feel like if it were GameStop itself that were managing it then it would be unlikely to actually work. It's not like digital storefronts are new ; I think GameStop should have been pivoting the moment that Steam started getting traction.

Im pretty sure thats what the CEO pitched.

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#16

Post by qrush »

As a avid eBay customer I am pretty relieved. I buy 2-3 items a month and was selling for the last 2 years on the platform. It's come such a long way and is really a great, streamlined experience. Of course I'm sure folks that make their living off their stores & sales will have different opinions, but I'd say as a routine customer and seller it doesn't need an external company's takeover pressure on it.

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#17

Post by boringg »

yalogin wrote: post #12
colechristensen wrote: post #5

Earlier quoted context omitted.

Gamestop turning into an eBay storefront makes a lot of sense to me and this seemed to be a very rational step to take when the short squeeze anomaly left them with billions in the bank and a business model that no longer makes very much sense with physical game sales being eaten by digital-only sales along with the potential decline of the console. They already have the position of used buying and sales, extending t…

They still don’t have anywhere close to buying eBay.

Please see: Leveraged Buy Out.

For the benefit of all the people on this thread not understanding what the proposal is for the acqusition: "A leveraged buyout (LBO) is the acquisition of a company (typically by a private equity firm) using a significant amount of borrowed money (debt) to meet the purchase price, often 60% to 90% of the total cost. The target company’s assets are used as collateral for the loans, which are repaid using the company's future cash flows."

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#18

Post by Scoundreller »

cmiles8 wrote: post #10

Well if you’ve seen the CNBC interview with the GameStop CEO he couldn’t answer basic questions about the deal so the outcome here isn’t surprising. The interview was so bad the first time I saw it I thought it was some sort of satire bit. No, it was real and the commentators were literally speechless.

Tbh, if you can convince someone to take your relatively worthless pieces of paper in exchange for your valuable asset, then your worthless pieces of paper are no longer worthless.

Not much different than me having a bit of cash and putting 5% or 20% down to buy a home or car: now I’m a big asset and debt holder and you got some pieces of paper with dead presidents on it.

That was the hard part of the deal: will (enough) eBay shareholders want to be GameStop shareholders.

eBay shareholders would be right to be upset with eBay management. eBay has treaded water in a niche of online shopping while online shopping has grown massively. Whether GameStop is their solution or not, Iunno.

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#19

Post by coffeebeqn »

tombert wrote: post #9
colechristensen wrote: post #5

Earlier quoted context omitted.

Gamestop turning into an eBay storefront makes a lot of sense to me and this seemed to be a very rational step to take when the short squeeze anomaly left them with billions in the bank and a business model that no longer makes very much sense with physical game sales being eaten by digital-only sales along with the potential decline of the console. They already have the position of used buying and sales, extending t…

I guess it comes to management. I agree that if GameStop were basically rebranded as eBay brick and mortar stores, that might work. I guess I just feel like if it were GameStop itself that were managing it then it would be unlikely to actually work. It's not like digital storefronts are new ; I think GameStop should have been pivoting the moment that Steam started getting traction.

They’re only 22 years behind

Re: eBay Rejects GameStop's $56B Takeover as Not Credible

#20

Post by Scoundreller »

gedy wrote: post #7

I'm pretty sure this was just a stunt to manipulate both stock prices for some short term play.

It’s been a lot of (unintentional) free advertising for eBay and they’re not even doing a good job of embracing that.

Probably more people than ever have thought of starting a shopping search on eBay than ever (outside pandemic shortages).

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