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Many people noticed the math doesn't add up, e.g. in the CEO's interview here [0]. Am wondering if they are betting on the stock going up because of the news so
by Iolaum 6mo ago
Many people noticed the math doesn't add up, e.g. in the CEO's interview here [0]. Am wondering if they are betting on the stock going up because of the news so they would then be able to fund the deal.
[0]: https://www.businessinsider.com/gamestop-ceos-awkward-interview-after-billion-ebay-offer-2026-5 https://www.businessinsider.com/gamestop-ceos-awkward-interv...
- ball_of_lint 6mo agoI think Ryan handled that badly because he didn't believe the question was serious. They're offering 50% cash and 50% stock. At an eBay valuation of 56B: 20B of cash will come from their creditor, TD Bank. 8B will come from GameStop itself. 28B will come in the form of stock from the resulting entity, which will own eBay and presumably have a valuation north of 56B. The resulting entity may end up having 50% or more of it's equity allocated to the existing eBay shareholders. This is normal for a M&A where a smaller company buys a larger one.
- fragmede 6mo ago"Normal" for M&A, and if you drink enough finance kool-aid it even makes sense, but then you step back, and go wait, no it doesn't!
- ball_of_lint 6mo agoDoes it make more sense to you phrased as "GameStop offers to purchase controlling 50% of eBay for $28B" ?
- fragmede 6mo agoThe problem is it does!