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Any reasonable person could see this was a ridiculous clown show, put on by the ridiculous clown show meme stock company.
This movie isn't over yet. We'll have to wait and see if GameStop goes full 80's on them with a hostile takeover attempt.
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.
Are you trading collectibles? I’m just genuinely curious what someone would buy with 2-3 transactions a month.
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.
I remember working in a CD Warehouse in the early aughts. Our store was next door to a Game Stop. The woman who worked at the Game Stop would come over and chat music with me when her store was slow. We used to joke about how both of our industries are seemingly dying a slow death. Console and game prices were going through the roof at the time. Compact Discs were being replaced by downloadable music. A few months before I quit, we finally started reselling DVD's to buoy the CD reselling part of the store.
As it turns out, the gaming industry outlasted the CD reselling business by quite a bit. lol
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> works for no salary Working for no salary is almost never charitable and is almost always just part of a larger tax avoidance scheme.
Yeah I've never thought that that was the win that people seem to think it is. When you're that high up in the company, you have so much stock that you can pretty easily get loans against for however much you need, and write off the interest in the process.
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CNBC hard fumbled in that they didn't even understand what the offer was. The CEO put that on full display and embarrassed the hosts basic knowledge of finance. It was hard to watch.
I have absolutely no clue how you could watch the interview and come away with this conclusion. The purpose of an interview is to ask Socratic questions to allow the guest to talk about something of which they have intimate knowledge. The CEO made it seem like he himself didn't know how the math for the offer worked, and even when presented multiple opportunities to correct that impression, he made no attempt to conv…
The reason is pretty apparent. They are bagholders. People like this show up in every thread about Gamestop boasting about how amazing Cohen is in a weirdly personal manner, and have a very fantastical view of how things are going to go -- because their investment depends on it, and they built a literal cult around the idea that GME would make them rich, which necessitates viewing reality a little differently from the rest of us.
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.
The context this comment misses is Gamestop's secret weapon is their CEO Ryan Cohen who has been sitting around the hoop trying to figure out how to leverage Gamestop's fundraising capabilities to do something big Couple of highlights on Ryan - Built and sold Chewy from a startup to the largest ecomm acq of all time - Became #1 individual shareholder of Apple early on - Bought a 10% share of Gamespot in 2020 becoming…
Similarly, his strategic initiatives at Gamestop have all been failure (e-commerce push, NFTs, digital games platform, crypto investments, ...). The only thing that has worked is aggressively cutting costs, mainly by shutting down stores, which was a plan that had already been proposed by BCG before Cohen came onboard.
Basically, he has done nothing except for taking credit for a plan that was already in motion and repeatedly diluting shareholders to raise funds that have been sitting in T-Bills ever since. There is no indication whatsoever that this guy is some kind of business genius who would be able to run Ebay better than the current management - quite the opposite actually.
Here's the biggest reason why - GameStop CEO Ryan Cohen gets a performance pay if the market cap goes up: > The total award consists of stock options to purchase 171,537,327 shares of the Company's Class A common stock at a price of $20.66 per share. Tranche Award% Market Cap Hurdle EBITDA Hurdle 1 10% $20 Billion $2.0 Billion 2 10% $30 Billion $3.0 Billion 3 10% $40 Billion $4.0 Billion 4 10% $50 Billion $5.0 Billio…
The Performance Hurdles will be adjusted by the Committee equitably and proportionately as determined by the Committee in a manner designed to preserve the economic opportunity provided under the Award, (a) higher to account for acquisition activity for which stock is provided as consideration; and (b) lower to account for a split-up, spin-off, dividend or other distribution (whether in the form of cash, shares, other securities, or other property) or divestiture activity, in each case, that could be considered material to the achievement of the Performance Hurdles, as applicable.
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.
Just saw this for the first time. How someone can show up on a major network like this is beyond my understanding. Literally couldn't answer where the money would come from.
Drugs might explain many things.
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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.
The sad part is the offer primarily focussed on how eBay can cut costs when a lot of that spending is probably accretive. eBay’s biggest issue is their declining online shopping marketshare. They’ve gone from owning nearly the entire market to just losing it.