this post was submitted on 06 May 2026
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They have like $9B cash, and a note from TD for another $20B, which covers the cash half.
The stock half wouldn't even really be dilutive, since they would add the balance sheet of eBay to their own, and eBay stock would cease to exist. There are currently something like 450M shares; assuming 1B new shares at $25B to facilitate the purchase, that's 1.45B shares of a company with a market cap of $11B + $48B = $59B., which is roughly $40/share.
They are diluting the value of eBay's shares.
For what purpose? So they tie up with what is worthless junk stock ?
This will go nowhere.
Kinda, but not really. Each share becomes $56 and like 2 new shares. It's more like a fat dividend than a dilution.
You should look into Cohen's track record before assuming it'll go nowhere.
There's a debt of the other 25+ billion that gets added to them. That's coming from somewhere, because it goes to eBay's shareholders, not to eBay.
The debt is only $20B, even then it still works out to about where it's trading now, so still not really dilutive. And it's still under 50% leverage, which is honestly pretty typical for a large company. Assuming Cohen actually has a plan to boost profits, that debt isn't particularly concerning.