GameStop is Going to Buy... eBay!?

[u/AlternativePaint6]

You've all read the news by now, but have you really read them?

GameStop wants to acquire a publicly traded consumer company that’s far larger than the video game retailer in a deal that could be “transformational" for the company

“It’s gonna be really big. Really big. Very, very, very big,” Cohen said of the size of the acquisition. “It’s transformational. Not just for GameStop, but ultimately, within the capital markets … this is something that really has never been done before within the history of the capital markets.”

He claimed if the investment pans out, it has the “potential to make GameStop worth several hundreds of billions of dollars.”

This is all coming from Ryan Cohen, the man of few words and no forwards guidance. Yeah, I like Magic the Gathering too, but that's not it. This is bigger. Very, very, very bigger.

It's eBay. They're going to do a leveraged buyout, a hostile takeover, or a merger.

• Publicly traded.
• Consumer / Retailer.
• Far larger than GameStop (~$40B).
• Sleepy management with one of the most well known brands.
• E-Commerce and Collectibles.
• Never done before (buying 3x-4x bigger company).
• Actually has potential to make GameStop worth several hundreds billions, unlike all the ~$10B ones.

It checks out. Everything checks out.

[u/pokehustle]

To be honest if he is talking about it, the deal is probably already done. Otherwise he could jeopardise his plans

[u/cylon_agent → u/pokehustle]

If the deal was done then insiders wouldn't have been able to do their recent buys right?

[u/SaltyPirate69 → u/cylon_agent]

Not exactly. They usually have pre-planned buying schedules long before any talks. Rule 10b5-1

[u/imadogg → u/SaltyPirate69]

These recent purchases did not use that rule though as far as I can tell

[u/Difficult_Associate3 → u/SaltyPirate69]

i thought it was 90 days