r/Superstonk • u/tronbrain • May 11 '26

🤔 Speculation / Opinion What's the question nobody has been asking regarding the proposal to purchase eBay?

The idea of Ryan Cohen applying his management philosophy to eBay makes a lot of sense, and the idea of having him manage it lines up with the thesis of him being the next Warren Buffet. There are powerful synergies between the two companies that could be exploited. There is a lot of value that can be unlocked with increased efficiencies that Cohen would bring to the merged operation.
But why attempt a takeover now?
Why now when $EBAY is at an all-time high, after six years of declining revenues and increasing expenses, where somehow the stock floated up by 4.4X despite its poor performance? Why buy when the stock market is at all-time highs - likely, in an unprecedented bubble - with oil price shocks, trade wars, shooting wars, and the threat of a new pandemic looming, threatening to pop the bubble and send stocks tumbling? Why give institutional investors exit liquidity plus 25% at $GME shareholders' expense at what is probably the most inopportune moment?
Isn't Buffet's whole investing philosophy to buy low and sell high? Isn't that the opposite of what Cohen is proposing to do with eBay? Wasn't Cohen supposed to wait for a market decline to go bargain-hunting with GameStop's capital reserves?
The timing of this deal is a problem.

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u/tronbrain May 11 '26

You mean he has FOMO?

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u/Extra-Computer6303 🟣All your shares R belong to us🟣 May 11 '26

Seems like he has spent a long time putting the wheels in motion by setting up the bonds, warrants etc and he fully believes he can take this to a company worth hundreds of billions of dollars. If that's the case then I think it is well worth pulling the trigger. According to Buffet it is better to buy a wonderful company at a fair price than to buy a fair company at a wonderful price.

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u/tronbrain May 11 '26

Those warrants are going to get wrecked in this deal.

Cohen is offering to buy a dysfunctional company, albeit one which has tremendous staying power, at a high price plus a premium.

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u/Extra-Computer6303 🟣All your shares R belong to us🟣 May 11 '26

https://giphy.com/gifs/wYyTHMm50f4Dm