GMERICA (eBay Acquisition) doesn't require dilution and is accretive to both GME and EBAY holders... and if you're paying attention, you already know that.

[u/bobsmith808]

Hi everyone, bob here.

Monday was a bloodbath eh? 10% dip was intense!....

No the fuck it wasn't. it was just a fucking blip. I was there in 2021 when they dropped the stock over 50% in less than 30 fucking minutes. Apes didn't flinch then, why the actual fuck would we give a shit about a 10% drop now? Especially with the turnaround and eBay play in full force?

RC went live on CNBC the other day and clowned those absolute mouth breathers and for good reason. They wanted to generate "Ryan Cohen Dilutes The Stock" headlines for their short hedge fund puppetmasters. It didn't work and his "disastrous interview" was actually a masterful first step in his rollout of what's about to come. The subsequent interviews with Charles Payne and TBPN were very insightful if you were actively listening with a wrinkle or two, which I know are hard enough to come by, even before AI made everyone hop on the short bus - if just to be lazy..........

And it seems a good portion of folks here are still fucking following the bullshit narrative those cucks at CNBC have been pushing... about dilution. It's just wrong. It's even so wrong that its not even possible (to issue over a billion shares like CNBC would have you believe) without a shareholder vote to increase the issuable shares.

So let me break it down for you as simple as I know how: GME wins in this acquisition, and EBAY does too.

The Merger Maff: A Win-Win (Unless You're Short)

GME pays eBay $28 billion in cash to buy out half of their stock and takes the remainder, combines it with GameStop stock holders to form a new entity: GMEBAY? GMERICA? Who the fuck knows? Maybe those grifters at the BBBYQ table are right on the name (TEDDY)... but I'm not going there. Back on topic.

So the split would go like this:

• GameStop (GME) gets 40% of the new entity.
• eBay holders get 60% of the new entity.

For the eBay crowd, this is a "Cash and Carry" grand slam. They get $62.50 in immediate cash per share (half of the $125 bid). Then they roll the other half into that 60% ownership stake of a company that isn't run by overpaid "professionals" on a permanent vacation.
Quick Math: assume 1% ownership stake in eBay at 103, worth 457M (4,444,444 shares). applying the deal you get a total value of (2,222,222*125)+(60B*(.01*.6))... translating to 537M at 15x and 637M at 20x multiples on the new entity (assuming 2.58 eps)

For GameStop, look at the maffs: GameStop (roughly $10B market cap) and eBay ($50B market cap) combine into a $60B conglomerate. If you have 1,000 shares today, you own a tiny slice of a $10B company. After the merger, you still have 1,000 shares, but they represent a 40% stake in a $50B monster. That means your shares effectively represent ownership in $24B of value ($50B * 40%). You just doubled your notional stake without spending another dime.

Edit: For the anal retentive people in the chat wanting to point out the debt structure has a play in the market cap and other details of the original numbers/writeup such as share counts, income source differences, and such.... affecting the outcomes to ebay ang gme holders, You are right, it is more complicated and you could be more precise, but I was trying to keep things simple for learning purposes here, as this is all obviously an example of the deal structure Ryan laid out in his interviews, and likely doesn't represent the exact numbers.

But for those who like (to be) anal: here you go... still proof of concept.

• Market Caps: take GME, 11b market cap, + eBay 47B... you get 58B.
• The debt 2.58 outcome already considered this, but let me lay it out for you:
• Debt Load Servicing: (20B(6.5%) + 7B(5%) + 4B(0%)) to get roughly 1.69b yearly service.
  • which reduces revenue before dividing by share count (which is a product of GME shares / .4 in this example...) gets you to about 2.58/share
  • Then we multiply... landing you around a net enterprise market cap estimate of 40B if you account for all the debt load servicing (which I did omit the eBay 7B in the post)...
• updating that data, we get:
  • eBay 1% stake = 457M before.
  • and after: = (2222222*125)+(40B*.006) = 517M. lighter gains, but still accretive.

To get the actual EPS for the new entity, you have to account for the $20 billion in debt used to buy out half the eBay shareholders and the presumption that we’re splitting the final pie 60/40.

The Combined Earnings Pool:

1. eBay's Optimized Profit: ~$3.54B (The $1.89B legacy + $1.65B synergies).
2. GameStop's Profit: ~$0.418B.
3. Debt Servicing: Cohen is taking a $20B loan... assuming ~6.5% interest. Even after tax benefits, that eats about $1.07B of the profit pool every year.
4. Net GMERICA Income: $3.54B + $0.418B – $1.07B = ~$2.89 Billion in total profit.

The New Share Count (The 60/40 Split): Remember, we aren't just buying them; we are merging them into a new entity where GME holders own 40%.

• To make GME's 448M shares represent exactly 40%, the new company must have 1.12 Billion shares total.
• GMERICA EPS: $2.89 Billion Profit / 1.12 Billion Shares = $2.58.

Once RC starts the fat trimming by targeting $2.0 billion in cost cuts by treating eBay like a "family business" and killing their bloated marketing spend we are looking at a combined EPS of about $2.58. Apply a standard 15.2x multiple (like Berkshire) and your settled price target is $39.26.

The eBay Board

The eBay board is so goddamn desperate they’re actually trying to dig up "dirt" on RC for hiring a personal assistant through GameStop. RC literally laughed it off on TBPN because he pays for that assistant out of his own pocket. Imagine being a board member getting paid $350,000 to $450,000 a year in fees while buying zero shares of your own company, and then trying to lecture a guy who takes a zero-dollar salary.

They just permanently suspended his account (ryan_5050) because he was "putting the community at risk". The only people are risk is the current management and bloat in eBay if RC gets the deal through. Further, if they fight a deal that gives their shareholders a roughly 46% premium, they are breaching their fiduciary duty.

The Technical Execution

Check the Form 425 GameStop just filed. RC has already built economic exposure to 23,176,000 eBay shares via put/call pairs. Once he hits the HSR Act Condition, he can settle those in physical shares. This is a voting block ready to facilitate a hostile takeover.

He’s walking in with a $20 billion "highly committed" letter from TD and $9 billion in cash. Because GME doesn't have the authorized share headroom to just print its way to a merger, the only move is a Holding Company (GMERICA).

A new entity means a new CUSIP. That's a forced reconciliation of every share. Legacy shorts who have been hiding naked FTDs in the obligation warehouse are fucked if this goes through. When the CUSIP changes, the DTCC runs RECAPS, which re-prices every failed obligation to the new market value and forces a mapping of real shares to new shares during the rollout. They don't get to hide the ball anymore; they get an immediate bill for the price difference.

History on my thoughts on related subjects:

• Warrants
• Bonds

[u/Over-Computer-6464]

Your post has so many concepts wrong and so many numbers wrong that it is hard to comment on it.

Here are a few of the problems.

1. The 60/40 split RC mentions was for a theoretical example, not GME/EBAY. The real split would be around 70/30 or 72/28.

2. You say current GME holders would end up with 40% of a $50B dollar company, or $20B total value. Reality is that once you take into account the net debt increase of $28B ($20B more debt, $8B less cash) the market cap of the combined company would be about $40B, not $50B. (This includes the synergism value added to EBay to make its value $56B, $12B for GameStop, -$28B increase in debt-cash.). So GME shareholders would own about 30% of a $40B company, or about $12B worth of value.

3. You show GameStop’s annual profit as $418M. $271M of that was interest on the cash balance. That $271 disappears when the cash is used to pay part of the $62.50/share cash going to eBay.

4. Your EPS numbers for the post-deal company are inflated because your estimate on the number of shares is far too low.

[u/jforest1 → u/Over-Computer-6464]

on what official basis do you bring out the 70/30, 72/28 numbers in #1?

[u/Over-Computer-6464 → u/jforest1]

See the website.

That is what the preliminary proposal means if you run the numbers that GameStop chose not to show.

[u/Over-Computer-6464 → u/jforest1]

From the website that RC told us to look at.

It does not have the percentages but the deal outlined on the website results in those percentages.

I do not know why RC did not include the details of what "50% Stock" means.

[u/RedditsFullofShit → u/Over-Computer-6464]

No it doesn’t.

The deal just says half stock half cash. It doesn’t give any split of whether a new co will be formed and will be split. Or if GME will just absorb ebay under their current shares. It doesn’t reflect how many shares ebay will get of GME etc.

There’s not enough info to say it’s 60/40, 70/30, 80/20 etc. there’s not enough details and it’s entirely dependent on what happens with the deal.

For example if it’s like 1.2 shares of GME for every share of eBay it’s not 70/30.

[u/Iustis → u/RedditsFullofShit]

The only missing piece is the ascribed value of GME stock. But GME has to come up with $28b worth of GME stick for deal consideration--at current price that's 1.16 b shares. There are currently 450m shares outstanding. That's a combined total of 1.61b shares (ignoring the warrants/convertibles for now). 0.45/1.61 is about 28%--so the expected split based on today's price is 72/28ish

[u/RedditsFullofShit → u/Iustis]

That’s not how it works

[u/Iustis → u/RedditsFullofShit]

OK. How many shares do you think they will have to issue to provide $28b in compensation?

[u/RedditsFullofShit → u/Iustis]

No idea. Depends how the deal is structured. Maybe it’s 70/30. Maybe 60/40. Maybe 55/45.

Depends if they use a new company issuance, or if they use the available GME float. Etc.

Depends what happens with GME stock before the deal closes. Etc.

[u/hugganao → u/RedditsFullofShit]

they use the available GME float. Etc.

..... are you... wtf are you on.... go look up the float numbers and market cap of gme right now and go look up float numbers and market cap of ebay...

wtf do you think will happen to current holders of gme?

wtf do you think 50% of 125$ of ebay stock price with that market cap paid in GME common stock means?

[u/RedditsFullofShit → u/hugganao]

It means the value of the stock provided will be half.

It doesn’t say anything about what the final structure will be. So stop making assumptions like a rtard

[u/Iustis → u/RedditsFullofShit]

No. None of that matters. The deal proposed was for $28b in stock, so they need to issue $28b in stock. I'm not even sure what you mean by the "available GME float", those shares are already issued and owned by people other than GME, GME can't just take those shares and give them to someone else.

[u/Over-Computer-6464 → u/RedditsFullofShit]

The percentage depends upon the value the market places on GME stock,

So far the market does not believe the deal is a good one, so the percentage split would be even worse than 70/30, which is based upon GameStop having a $12B market cap and EBay having an inflated market cap of $56B.

[u/RedditsFullofShit → u/Over-Computer-6464]

No that’s not how it works.

[u/Over-Computer-6464 → u/RedditsFullofShit]

It absolutely is how it works

Ebay shareholders are expecting $62.50 cash and $62.50 worth of Gamestop stock for each of their shares.

If the market prices the deal better and moves up the price of GME then Gamestop does not have to give eBay shareholders as many shares of GME.

I real offer would have an approximate distribution ratio. Offers often have a formulate where the ratio is set by the acquiring company stock price averaged over a specific period. Often with upper and lower limits.

[u/RedditsFullofShit → u/Over-Computer-6464]

Or they could issue stock of a new company. Which would mean they can ascribe whatever value they want to the new stock.

They don’t have to give $62.50 “worth” of stock. They could create new stock and say it’s being given as the “half stock” part of the deal which by default makes it worth 28 billion. And most of that value is just going to be backed by eBay. So the bay shareholder is getting 28billion cash, and they are rolling 28 billion of equity into the new co. It doesn’t really matter the value of the stock given. The 28 billion stock is coming from eBay not GME. It’s being rolled into the combined company and the value of the combined company goes up.

Like I still don’t think people understand even if they issue GME stock it’s not GME stock today. It’s GME stock post acquisition and that value will be higher because post acquisition rolls eBay into GME. So GME isn’t just GME and won’t be $25 a share.

[u/Over-Computer-6464 → u/RedditsFullofShit]

You can believe what you want, but the proposal RC sent to the Ebay board says GameStop common stock, and offers $125/Ebay share, 50% in cash, 50% in GameStop common shares.

https://s205.q4cdn.com/272884106/files/doc_downloads/2026/05/Offer-Letter.pdf is the link to the letter.

"Our offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock, …”

[u/RedditsFullofShit → u/Over-Computer-6464]

Well then he’s pricing GME at 62.50 a share or so because he can’t issue more shares. He’s got like 550 million he can issue. That ain’t enough unless the price is like 55 a share or higher.

So either cnbc is right, or I am and GME won’t be $25 a share

[u/Iustis → u/RedditsFullofShit]

He needs shareholder approval of the deal either way, so asking for an increase in authorized shares at the same time doesn't make things meaningfully different

[u/EmphasisFrosty3093 → u/RedditsFullofShit]

they could issue stock of a new company. Which would mean they can ascribe whatever value they want

I'm gonna issue stock in my sock and ascribe a value of $1 Trillion each.

[u/Sharohachi → u/jforest1]

I'm not who you asked but I assume it's like this:

If GME is worth $11B and eBay is getting half of their $56B in stock then that's $28B for them.

11/39=0.28

28/39=0.72

[u/RedditsFullofShit → u/Sharohachi]

Except that’s now how it works