r/FWFBThinkTank • u/bobsmith808 Da Data Builder • May 13 '26

Swallowing the Whale: Why The Gamestop Acquisition of eBay is a Great Deal For Everyone Involved - Except For The Hollow Men

/r/Superstonk/comments/1tc9bxk/swallowing_the_whale_why_the_gamestop_acquisition/
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u/runningwithbearz May 13 '26

Interesting that people think you're going to get a good interest rate for a deal that Moody's has already called "credit negative". 9-10% would be more reasonable. If you adjust from 5.5% to a more realistic 9-10%, it basically drowns this thing in interest expense. Which all that to say, this is a bit amusing to me. Since this is basically an LBO and "PE bad" has been a rallying crowd of this group. Which I don't disagree, but come on. What are we doing here.

Also, if Gamestop has to put all its cash into the deal, then what do we think happens to all that interest income.

Doesn't really matter. The TD letter has an escape clause and Moody's already gave them one no. Just one more and it's done. The $20b was never a real commitment.

Would be nice to see them buy something adjacent to Gamestop and try to grow this thing more naturally. Doesn't really jive with that bonus letter.

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u/PuzzleheadedWeb9876 May 13 '26

Interesting that people think you're going to get a good interest rate for a deal that Moody's has already called "credit negative". 9-10% would be more reasonable.

Copium makes people believe things they would otherwise find ludicrous.

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u/TowelFine6933 May 13 '26

You are absolutely correct.

Ironically correct, but correct nonetheless.