eBay suspended GameStop CEO Ryan Cohen’s account after he launched a publicity stunt to “fund” his $56 billion unsolicited bid for the company. Cohen listed personal items—including a life-sized Halo 2 statue drawing $10,000+ bids, vintage Willie Mays baseball cards, and literal socks—claiming the sales would help finance the acquisition.
The platform apparently didn’t appreciate the irony of someone using their service to raise money to buy them out. GameStop secured a “highly confident” letter from TD Securities for $20 billion in debt financing, but that leaves a casual $36 billion gap for a company worth roughly $12 billion trying to acquire a $48 billion marketplace.
They mention that gap even though GameStop has already explained how the deal works. They said the deal is half cash and half stock, so GameStop has $9 billion on hand they can spend and a $20 Billion loan from TD, there you now have the cash needed. As for the stock how it works is GameStop and EBay will become one new company and the EBay shareholders will receive a larger percentage of that company than the GameStop shareholders will. The exact percentage needs to be negotiated but it could be 80% to EBay and 20% to GameStop as an example.
The idea here is that GameStop compliments EBay really well as GS has thousands of physical stores that already know how to handle used products. So an EBay seller can take their products to a GS and to have them graded if needed and to drop off the product so GS handles the shipping. The Buyer of the product now knows that the item has been inspected and graded by an employee giving them confidence and they have the option to pick up at their local GS for cheaper shipping prices at a time when shipping is becoming more expensive. Also the GS board is really good at what they do and could make EBay a more profitable company.
Smaller companies buy larger companies all the time. For example Paramount buying Warner Brothers.
That is still only $29 billion and somehow I don’t think the CEO is gonna raise another $27 billion from selling socks and knickknacks. Kinda just sounds like inserting a middleman to angle at more profit. I would rather not pay a surcharge for eBay auctions, even if it adds some kind of quality assurance. His explanation of the acquisition just seems like more bullshit.
Edit: I wonder how many bag holders from the memestock era are viewing this as their salvation.
I mean GameStop is a great investment, they have had 7 positive earnings in a row now and have been able to build up a lot of capital in the process which they are now trying to utilize to acquire other companies like with ebay right now. Maybe this deal doesn’t go through maybe it does but they are clearly trying to make moves to expand. Its been nothing but positive since Ryan Cohen took over as CEO.
Being that he is a billionaire, his connection to reality probably rivals your own.
Last I checked when you invest in a company you want them to be profitable and maintain those profits while growing right? IDK why I would be out of touch for liking a company that is doing that, also a company I shop at and have been my whole life.
When you invest in a company you also then have a vested interest in them doing well. That can cloud your judgement and cause you to look at the things you want to see.
Sure but they are doing well, they are profitable and using that money to grow. Ebay + GameStop merges the physical and online used products space, not to mention both are huge on collectables too. You say I am only seeing what I want to see so enlighten me on what I am missing.
Imagine if I offered Dua Lipa 500 quid to have sex. She doesn’t need the money, she’s doing fine in the bedroom, and I don’t have that much money to spend. We can’t try to sweeten the deal by saying I’m a good lay. Even if we’re not being self-deprecating, we both know I’d be getting the better end of the deal here. She would be insulted I even asked.
That’s what’s going on. eBay is doing perfectly fine without a physical storefront, and GameStop isn’t a catch. GameStop made an unsolicited offer, and doesn’t have enough to actually pay it. This is an insult of an offer.
The merger could actually improve ebay, they’ve a lot of untapped potential, they should be getting into competing with Amazon or something.
Ah so stock dilution is the proposed plan
If eBay disappears, where will I sell Beanie Babies?
I worked for ebay and once had my selling account banned for mistery reasons. I have left since.
The brand name is worth a lot, the company itself is the biggest shitshow I’ve ever see.
I was going to get back on there, but yeah the “ai” moderation all these tech companies use doesn’t work.
hear me out.
CEO wanted publicity not cash.
he got what he wanted from TD. eBay did him a favor by banning his account because now he gets to keep all his stuff.
and now we’re talking about it.
get ready for the enshitification of eBay.
I thought Martin Shkreli was in prison
Any day now…
Actually, I’ve started to enjoy the taste of some crayons, I can survive so much longer than this
