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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

#121

Post by dagenix »

xp84 wrote: post #94
jader201 wrote: post #51

Earlier quoted context omitted.

I'm not sure I follow/buy the premise of moving second-hand sales to a physical building as beneficial to eBay. If I'm looking for X, I'd much rather go to an online store, where I have access to several listings of X at varying prices and condition, vs. make a trip to a physical store, see if they have X, and hope that the condition and price matches my expectations. Maybe if I'm not looking for X, and just want to…

^This. The crazy part is that in today’s PE-style system of things, the incentives… - GameStop shareholders - GameStop the company - e.g. employees - eBay shareholders - eBay the company - for example its employees …aren’t necessarily aligned. If GAME buys EBAY - it’s an exit for the EBAY shareholders, which is easy for them to evaluate as it’s presumably a $ premium over the share price today. If GAME then runs the…

My understanding is that existing Ebay shareholders would get half cash and half stock. In order to actually profit, those shareholders would need to believe that the combined company's stock could be sold off without taking a significant loss.

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

#122

Post by semanticist »

jerf wrote: post #103
danvayn wrote: post #24

Earlier quoted context omitted.

The TD Bank securities commitment of 20B to finance the deal and GameStop having a market cap far below the acquisition cost suggests that buying eBay would’ve been very problematic and risky for investors. But comparing it to K mart buying sears isn’t really accurate to me. Like yeah, GameStop clearly fits into the death of retail, and acquiring eBay does increase their market visibility or presence. Beyond that, wh…

If eBay thought having storefronts would be advantageous, they would have them. It doesn't make a lot of sense for eBay to merge with Gamestop only for the combined entity to decide that the most sensible first thing to do is close all the Gamestop locations. The physical Gamestop locations are also horrifically overprovisioned to be an eBay storefront. Many companies have already experimented with things like "locke…

GameStop's idea behind using their physical locations isn't for ease of shipping so much as ease of verification. People buying brand-name stuff off eBay (and Vinted, etc) pay for verification services to make sure that it's real. The idea - which is the only good/sane part of this entire takeover proposal - is to have retail locations that do the verification in person instead of shipping items to a central location for verification on sale.

But if eBay thought that would bring in more sales, I doubt it would be hard to find empty retail outlets in every city/town in the US and Europe since high street retail has been on a death spiral for years.

You can already use lockers for delivery/drop off with eBay through their courier company partners, at least in the UK.

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

#123

Post by zdc1 »

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.

Patrick Boyle on Finance has a Youtube video on the topic (https://www.youtube.com/watch?v=iBlu45HFruk). He basically explained that they simply can't afford the proposed transaction, so it was never going to actually happen.

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

#125

Post by Finnucane »

sushid wrote: post #107
happymellon wrote: post #85

Earlier quoted context omitted.

> Old computer stuff at least once a month. So, collectables...

How did you determine that? As someone who also buys old computer stuff from time to time, I wouldn't say they are collectibles.

If people are collecting them, they're collectable.

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

#126

Post by fragmede »

benj111 wrote: post #111
cryptoegorophy wrote: post #101

Earlier quoted context omitted.

They probably should do more marketing.

Why? Who isn't aware of eBay?

It's about the brand. Ehen shopping online, everyone may have heard of eBay, but how many people are going to go there first, as opposed to Amazon, Etsy, AliExpress, Temu, wherever else. And yes, eBay is going to have the weird eBay stuff, but if users don't even think to go looking there, they've lost a sale.

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

#127

Post by [deleted] »

TravisJamison wrote: post #43
qrush wrote: post #16

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.

[deleted]

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

#128

Post by Normal_gaussian »

Scoundreller wrote: post #18
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 (eno…

https://www.google.com/finance/beta/quote/EBAY:NASDAQ?window...

eBay is doing fine.

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