Struggling Video Game Retailer GameStop Is Reportedly Trying To Buy…eBay?!

Congrats to GameStop on being described as "struggling" when I would've expected "defunct" by now.

Them going "retro" makes sense to me. I happened to be near one of their locations the other day and remembered that the last time I went in there it was to ask if they still had a bin full of second-hand PS3 discs somewhere. All I got was a succinct "no."

They’re sitting on $9bil in cash and securities, $2bil of that was made last year alone. They’re hardly struggling

Cohen is trying to meet the requirements and unlock his 30 billion bonus for growing the company by buying a bigger one.

I mean they MAY have cash on hand but looking at revenue is different. I may have 100k in the bank but if I'm unemployed and have no income that won't last long. They need a source of income and with most game purchases going online that won't work so they need something else.

Ebay is probably too big of a target for them though...

I'm a gamestop investor and I'm really unhappy with the plan. Gamestop currently has little debt and 8 billion cash on hand. More cash than they have debt, and I have to admit ryan cohen did turn the company around. He did a good job taking Gamestop from a position where they were losing money every quarter to a position where they have profits every quarter.

But this plan is unhinged. It would make the company take on 20 billion debt, and dilute the stock from 448 million to 2.5 billion shares. Currently retail investors own 60% of the company - the only publicly traded company I know of that is majority owned by little people. We would be disenfranchised and retail would only own around 12% to 15% of the company after the dilution and the "big three" Blackrock, Vanguard, and State Street would likely become the majority owners. Because of the dilution our ability to earn ROI would be severely diminished.

In a hypothetical that Gamestop becomes wildly successful and reaches a 100 billion market cap, with the current float of 448 million shares the share price would be 223 dollars per share. If the float were 2.5 billion, then the share price would be 40 dollars per share. 40 dollars per share is lower than a potential entry point for retail investors who bought in back during january 2021. The difference between those two prices is the profit stolen from us, to give it to the big three.

The Gamestop reddits have turned into echo chambers run by delusional sycophants. They ban anyone criticizing the plan. Gamestop can't issue the 2.5 billion shares without a shareholder vote, and I will definitely be voting against it. I also wrote a letter to the board explaining why this is a bad plan and offering alternatives.

I feel completely, totally betrayed. Cohen posted on X about the "hollow men of the boardroom" not too long ago, about executives whose interests aren't aligned with investors. Then he rolls out a plan that would throw retail traders under the bus to fuel his own greed.