Technology

I don't understand how this deal can even happen

GameStop is only worth 11 billion. Trying to buy a company worth 5x what they are...

They're offering half cash (which they don't have, because they'd be worth at least 25 bn if they did), no one is going to lend them that much money, because again, they don't have the collateral to support it.

And they're thinking they can sell more of their own stock to raise funds...diluting their current stock, which would require they sell 3x their present value in stock to acquire??? Diluting their current shares in the process.

Two companies that are desperate for disruption. It's like one drowning person swimming over to another drowning person to rescue.

Cohen added that eBay’s earnings power could increase materially under tighter cost controls, arguing earnings could potentially double over a relatively short period.

Okay, yeah, he's fucking delusional.

(Also, 'GameStop stock sinks' feels like a mild tongue twister.)

Did it?

How is gamestip still even a thing? I havnt bought a physical game disc in years.

Good thing I cashed out after only losing most of a couple hundred dollars 😆😭

The proposal raises immediate questions about financing. GameStop's market value is only a fraction of the roughly $56 billion implied deal size, and while the company has lined up a $20 billion financing letter from TD Bank, the funding gap remains substantial.

Cohen offered limited clarity on the structure during what at times was a combative and awkward interview, repeatedly directing viewers to the company's website for details. 

"We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done. But the full details of the offer are on our website," Cohen said. "We will see what happens."

The black leather jacket is not helping

Go away GME.

Nice 🍿