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> GameStop, which had a market value of around $11 billion [...] EBay is several times GameStop’s size, with a market value around $45 billion as of Friday’s cl
by applfanboysbgon 6mo ago
> GameStop, which had a market value of around $11 billion [...] EBay is several times GameStop’s size, with a market value around $45 billion as of Friday’s close.
> Details of the potential offer for eBay couldn’t be learned.
This appears to be an attention stunt, of which Cohen has done a few since GME became a meme stock.
- voisin 6mo agoNot necessarily a stunt if they’ve taken a meaningful stake. Smaller companies can acquire larger ones. Market cap reflects equity, not enterprise value. If the target has low debt, the deal can be financed with borrowing. The 1980s LBO wave, led by Michael Milken, is a clear precedent.
- Esophagus4 6mo agoI’ve searched the net to find the example, but I remember this happening during the dot com era too… Some unknown tiny company made an offer to takeover Yahoo (or some similar company)… the tiny company made headlines for a moment then disappeared again. It was an example of dot com silliness. Can’t for the life of me remember, and Google can’t seem to either.
- iknowSFR 6mo agoMaybe but we have a recent sample of Paramount ($12b) acquiring WB ($62b).
- applfanboysbgon 6mo agoThat would be more accurately described as Larry Ellison (~$200b) acquiring WB.
- sheepscreek 6mo agoWho gave it in writing that he can back the deal if need be.
- sanswork 6mo agoIn that case though Paramount offloaded 25% to foreign wealth funds and had Larry Ellison willing to provide guarantee on(according to google) almost $50b of debt. Ryan Cohen is rich but he's not that rich.
- weard_beard 6mo agoI believe it was this time last year Ryan had a sit down with the Qatari sovereign wealth fund.
- aurareturn 6mo agoBesides the Larry Ellison, Trump, and Middle East backing, Paramount and WB's businesses have synergy. Gamestop and eBay have no synergy. Gamestop can't possibly run eBay better than eBay's current management. It's a meme stock looking to make noise so they can get a higher stock price, and then unload their shares onto the public market to raise cash. GME has 3x'ed their shares outstanding since Covid. https://www.macrotrends.net/stocks/charts/GME/gamestop/shares-outstanding https://www.macrotrends.net/stocks/charts/GME/gamestop/share...
- mattmaroon 6mo agoYeah I don’t blame them. They didn’t create the meme but once it happened, any responsible leader would start doing secondary offerings to raise money. I sure would. If morons want to keep investing in the stock of a company that has no other chance of survival, great. Now they’ve got $9 billion on hand and they’ve had time to find a niche, right-size, and the interest on the cash pile is great too.
- v4dm 6mo ago[flagged]
- Forgeties79 6mo agoNFT’s and crypto nonsense, for starters. Go look him up and what he has done at GameStop. He’s not exactly shy about his plans and likes to make dramatic statements.
- v4dm 6mo ago[flagged]
- theshackleford 6mo ago> are you trolling? Are you? https://finance.yahoo.com/markets/crypto/articles/gamestop-dispels-rumours-sold-324-135000050.html https://finance.yahoo.com/markets/crypto/articles/gamestop-d... You sound quite defensive. Are you a GME bagholder?
- v4dm 6mo ago[flagged]
- thrwaway55 6mo agoOh come on now, you know you are arguing in bad faith. Explain how the BTC in anyway synergized and drove value for anything GME did. MSTR has a BTC leverage angle that GME has never had so it's not even an apt comparison.
- JumpCrisscross 6mo ago> If you think buying BTC is crypto nonsense just wait until you hear about another public company, MSTR This is in bad faith. You said “GameStop has no crypto, are you trolling?” You were presented with refuting evidence. Now you’re shifting the goal posts.
- weard_beard 6mo agoThe attention stunts were a strategy toward finding profitability for the core GME business model. This is significantly different, in line with a strategy that seems to have been in place since he became CEO of Gamestop. This appears to be an attempt to take over eBay the same way he took over Gamestop by acquiring a 51% controlling interest with capital he will raise by further diluting the value of Gamestop shares. It appears long term he is trying to build the, "Amazon of the secondhand market".
- Triphibian 6mo agoI remember showing up to buy a new Call of Duty game on release day, back when physical was the only way to buy games and seeing tons of people with boxes full of old games and consoles. I realized then that GameStop's differentiation from other retailers was that it was also a kind of pawn shop.
- semperdark 6mo agoHowever GameStop does have like $9 billion in cash on hand if I recall correctly.
- JumpCrisscross 6mo agoTo be clear, if GameStop has no intent or ability to do the things they’re saying they’re going to do, as a public company in respect of another, that’s all kinds of securities fraud and shareholder-lawsuit catnip. Put another way, if you think this is fake you could make a lot of money. Because that would mean GameStop is de facto offering the market a free put on its own and eBay’s stock.
- aurareturn 6mo agoThis probably would have been investigated in the 2010s. Since covid, security fraud seems to be rampant. Gamestop is just in the business of selling their shares to retail. It's pretty much like a crypto shitcoin.