They're gonna have to sell ALOT of their NFT power packs
GameStop makes $55.5B takeover offer for eBay
261–270 of 731 posts
Re: GameStop makes $55.5B takeover offer for eBay
#262The 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…
> and then they list it on eBay and turn a bit of a profit with a local pickup option available
Sort of wondering why nobody did this already. I know that the better charity shops do this with rare and unusual books/records. The UK equivalent CeX has an online offering through webuy.com, which appears to be a Chinese owned multinational.
Re: GameStop makes $55.5B takeover offer for eBay
#263The 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 is dying, new competitors are being created constantly, and the big ones like Poshmark are getting more North American buyers and sellers. eBay has barely grown since their post covid slump
Maybe eBay survives as an international site but even at that point, with $20B in debt this will just follow the regular PE playbook of shutting down after many layoffs and pivots
The entire concept of, "I have $1,000 in the bank, im going to buy a $10,000 company, but the debt will be on the companies name, not mine" needs to pass. Can you imagine if the mortgage was owned by our home, not ourselves. And we could stop paying it without any personal consequences
If you want to buy a $50B company, you should pay $50B (loans are fine, but not putting the new company in debt)
Re: GameStop makes $55.5B takeover offer for eBay
#264The 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…
I thought the point of eBay was to get rid of that middleman. Wouldn’t that be something eBay would have done at some point if they wanted to own a pawnshop? Not saying that cannot work but that doesn’t sound like a genius idea
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 items the way Woot is for Amazon overstock.
Re: GameStop makes $55.5B takeover offer for eBay
#265Earlier quoted context omitted.
Have you used eBay in the last few years? It's awful for sellers and awful for buyers. This is coming from somebody who buys on eBay twice a month on average.
What would make it better? My only complaint as a seller is fees. I have no complaints as a buyer. The best part is eBay works exactly the same as 10 years ago, as far as I can tell.
I try not to use it and then something will come up and I use it. Could be my market, or who knows what but there seems to be more scams.
It’s the only place someone can give you a fake tracking number (somehow people get these from UPS) get caught and other than a refund after weeks and a negative reputation ding, they get to keep on doing it. The fake tracking number scam has been going on for years too, it’s still happening. Permanently ban for people caught doing this, preferred shippers with eBay as a managed tracker or something like that.
Re: GameStop makes $55.5B takeover offer for eBay
#266Important background: https://investor.gamestop.com/news-releases/news-details/202... CEO gets paid "only if GameStop achieves a market capitalization of $20 billion." Buying a $55bn company would certainly achieve that quickly. I'm not sure how they'd manage that (buy with what? Memes?), other than the should-be-illegal process of putting debt on the acquired company's balance sheet.
> the should-be-illegal process of putting debt on the acquired company's balance sheet. I agree it's weird but ultimately the check against dumb lending is natural consequences for the lender, right? If you ask me for billions in loans for your zero revenue company and I give it to you, whose problem is that but my own?
If it was just you personally, sure. But a bank failure affects lots more people than just the bank.
Re: GameStop makes $55.5B takeover offer for eBay
#267Earlier quoted context omitted.
What would make it better? My only complaint as a seller is fees. I have no complaints as a buyer. The best part is eBay works exactly the same as 10 years ago, as far as I can tell.
I try not to use it and then something will come up and I use it. Could be my market, or who knows what but there seems to be more scams. It’s the only place someone can give you a fake tracking number (somehow people get these from UPS) get caught and other than a refund after weeks and a negative reputation ding, they get to keep on doing it. The fake tracking number scam has been going on for years too, it’s still…
I have never had this happen, but I don't buy from first-time eBay sellers. There are definitely scams on there, but they seem to be "too good to be true" prices with 0 reviews on the seller.
Surely you're not getting scammed by sellers with lots of reputational history?
I actually am more nervous as a seller, as their buyer protection almost always sides with buyers, at least in the US (and the fee is astronomical.)
Re: GameStop makes $55.5B takeover offer for eBay
#268Earlier quoted context omitted.
>>> should-be-illegal process of putting debt on the acquired company's balance sheet This is a basically a leveraged buyout (LBO). All private equity works this way. Yes, it should be illegal, or at least heavily limited. I highly recommend this book: "Plunder: Private Equity’s Plan to Pillage America"
I mean, it is functionally the same as home loans? Would you be proposing a carve out that buying a house or car is ok this way, but nothing else?
Home owns are owned by people, not the home itself. If someone fails to pay a loan, their own credit score will be impacted
For these PE loans, its the new company that takes on the debt, not the buyer. Essentially any broke person can "afford" any trillion dollar company this way
Re: GameStop makes $55.5B takeover offer for eBay
#269The 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…
The part you’re almost touching on but not directly mentioning is the trading card and collectible marketplace. GameStop would probably be gone by now despite the meme stock if it wasn’t for trading card games and other similar collectibles, and eBay is very involved in that market.
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Re: GameStop makes $55.5B takeover offer for eBay
#270Important background: https://investor.gamestop.com/news-releases/news-details/202... CEO gets paid "only if GameStop achieves a market capitalization of $20 billion." Buying a $55bn company would certainly achieve that quickly. I'm not sure how they'd manage that (buy with what? Memes?), other than the should-be-illegal process of putting debt on the acquired company's balance sheet.
> the should-be-illegal process of putting debt on the acquired company's balance sheet. I agree it's weird but ultimately the check against dumb lending is natural consequences for the lender, right? If you ask me for billions in loans for your zero revenue company and I give it to you, whose problem is that but my own?
The lenders get their money back via management fees. Pretty much only the consumers and the employees get screwed over