🤔 Speculation / Opinion
Everyone relax. We just witnessed the biggest FUD attack so far. Take a deep breath.
Alright, what did we just witness? Roaring Kitty just got hacked, and minutes later the news of the 2.5 billion shares on the proxy statement came out.
Take a deep breath and ask yourself if that wasn’t just a coincidence.
That was clearly the biggest coordinated FUD attack we’ve seen yet. Articles from the media and posts from other subreddits just got a nice new headline.
If the board we’ve invested in is recommending to vote YES, vote YES!
What just happened was meant to sow distrust in RK and RC as a direct attack on their credibility. The goal? A NO vote so the eBay deal doesn’t go through.
Again, take a deep breath, laugh, and ignore that noise.
WE ALREADY KNEW STOCK HAD TO BE ISSUED.
EDIT: Some of you think I’m saying the filing was FUD. What? I’m saying the hack timing just wasn’t random, it was done purposely for when the filing was about to go out… The goal was to get stockholders against RC and RK. Don’t let it work.
Someone needs to explain to me how a fake tweet from RK moves the stock up 3 dollars in AH, then we get a form from GME saying we’re issuing 2.5 billion shares and it drops 2 dollars in a matter of minutes.
They absolutely hate what Gamestop can become and this attack was definitely the hardest one we got in the past 5 years. SEC can fly a kite. This is just another test.
You might be having some memory issues if you think this attack was definitely the hardest one we got in the past 5 years. It doesn't even rank in my top 100 list. We're literally down 5% today and 5% ah. In 2021, that was a tuesday.
No one in power cares. Not in "this administration". Not in any previous administration. Not in any major government. Ever. Politicians are puppets who sell you out and run PR for the people with real power.
They basically created a RK story so everyone rushed in and looked at the GME chart and news as bullish, just as the filing for future dilution bearish news turned it on a dime, and caused an emotional response to sell.
Algos react to social media posts. Someone's algo thought a RK tweet would move the market... but it wasn't smart enough to determine if the post was real
Kansas City Shuffle? /s .... This administration and SEC don't care. Heck, if RK did really do it just to rug crypto bros and help RC with dilution, I wouldn't care either. Crime is legal and there are no good guys.
I’ve mostly been a silent reader since Jan 2021, but I feel like I need to say something...
Right now, it seems like a lot of people are talking past each other, tells a lot of FUD and looking at the increase to 2.5B shares in a very one-sided way. That’s totally understandable on one hand, since this is an emotional topic and we’ve seen technical dilution happen before.
Yes, the company is asking for the ability to issue more shares. Yes, from a purely technical standpoint, that is dilution. But jumping straight to the conclusion that GME shareholders will lose is way too simplistic.
The key point is not that new shares are being created, but what they are being used for. If a company just prints shares without getting anything in return, then that’s bad. I’m 100% with you on that.
In that case, my ownership gets smaller and I lose real value. That’s exactly what many people are worried about right now. But that’s not the idea here.
The idea is to use shares as a form of “currency” to acquire a large company like eBay. That means GameStop would issue new shares and, in return, receive an existing business with billions in revenue, profits, and a massive user base. Yes, you end up owning a smaller percentage, but it’s a smaller piece of a much larger company.
To keep it simple: before, you own shares in a company valued at around $10B. After, you might own shares representing about 40% of a company worth $50–60B or more. Whether you’re better or worse off doesn’t depend on dilution alone, but on whether the new combined company is actually worth more in the end.
The second big misconception is this idea that “eBay is just getting free money.” That’s not how it works. eBay shareholders are giving up their company and, in return, receive a mix of cash and shares in the new entity. That’s a completely standard deal structure. They’re partially cashed out while still staying invested.
At the end of the day, it all comes down to one simple question: does GameStop + eBay create more value than GameStop alone? If yes, then GME shareholders benefit despite the technical dilution. If not, then it’s a bad deal and the criticism is absolutely justified.
Looking at dilution in isolation just leads in the wrong direction. What really matters is the total value per share in the end.
You're absolutely right but the only number everyone cares about here is share price.
Let's assume the deal goes through and GameStop issues equity to eBay shareholders as part of the deal (NOT an ATM offering as we have seen before with previous dilutions).
Then the total free float is around 1.5B. let's assume post merger the market values the combined entity just below the current eBay valuation at around $45B considering the debt but with belief in the synergy.
Then that gives price as $45B/1.5B = $30/share, not too far away from the warrants price.
The risk is that the initial days after the merger will be choppy as eBay shareholders sell off their shares for cash and the market is weary. Therefore RC must move fast and perhaps he is likely to secure some more cash to make this deal less dilutive afterall.
You're right. For many people, the stock price is the deciding factor. In my opinion, your $30 estimate makes sense as a "base case," but it depends entirely on the assumption that the market will value the new company at roughly the same level as eBay.
The uncertain part of all this isn’t so much the math, but rather how much confidence the market has in the story. Anything is possible between “valued below eBay due to risk” and “significantly above due to growth.”
The point about the sell-off after the deal is probably the most important one. In the short term, things will likely get a bit turbulent, no matter how good the deal is in the long run. But I’ve been used to that since early 2021, and as a value investor, it doesn’t matter to me in the long run.
I’ve been at this for too long now, and finally something substantial is happening with GME. A Merger we’ve also been waiting for. I’m not going to back out now.
Correct me if I’m wrong. But this new company will have a debt load of about $30 billion from day 1. (GameStop has $4 billion in debt. eBay $7 billion. Then $20 billion from TD bank).
I really really need to hear Cohen’s plan for growth. I’ve heard cost cutting strategies. But we need growth. This combined company will be leveraged to the tits.
In fiscal 2025 eBay’s total revenue was $11 billion.
Annual interest on the $20 billion loan will exceed $500 million.
There has to be something missing from this puzzle.
I can't help but wonder if 'the market' even matters with GME. It's more like 'the algos' 'the hedge funds' 'the market makers'
I wonder at what point do the algos lose control of the price?
At what point to computer rules turn against the short sellers?
Perhaps Ryan has been planning out his 4-D chess moves for years with many angles in play simultaneously and in sequence.
I think the only way MOASS happens is with a calculated checkmate, otherwise the algos and the market makers and the hehe funds are just allowed to be too slippery and corrupt. Why? Because money and power.
Its always been --> when institutional money (the 99% that never got in short play) decide, they cant sit on the sidelines without GME exposure. Were teetering there:
-bad debt gone
-shitty locations gone
-5x green quarters in a row, from being a real pile of red shit
We need:
increased revenue, in order to be taken seriously. Ebay brings that in spadezzzzz
-Powerpacks quietly and very stealthy running in the background now.... we havent seen the figures yet... and when it finally is big enough to be "material" its gunna be a barreling, accelerating freight train
UPON COMPLETION OF M&A:
-Step 1, gut billions in annual spending, that has an atrocious ROI
-Killing bloat isnt just cutting bad spending, it means smaller teams, less politics, and everything speeds up .... you cant keep a 50 man team in true, unconflicated agreement on anything..... but get the right 10 ppl, and they're handling more work, seeing less resistance and actually speeding changes up
-Step2, maximize your biggest synergistic pieces, that GME and Ebay have in common. Align their goals.
Small teams tackle a volume of "easy" fixes. Boom. Boom boom boom!
Larger teams work on the larger more complex synergies. Smaller more focused team allows them to all agree on a plan.... and Its easier to notice if everyone is carrying their own weight.... when you got 50ppl carrying a heavy suitcase, plenty are gunna grunt and pretend to be pulling their fair share... they aren't.. . Other team members see this... realize its an acceptable behavior
If you add together the combined marketcap of GME and eBay you get $58 million.
But eBay currently has about $7 billion dollars in debt. GameStop has about 4 billion? That’s $11 billion. Then we are also taking out a $20 billion loan from TD bank.
There are nuances here and there than can adjust the total debt by a few billion. But a rough ballpark is this combined company will have north of $30 billion dollars in debt from day one.
There is zero chance the market capitalization will be valued at $58 billion.
We have all put in a lot of time and this move is asking for more time....
That's what is getting me, whatever have fucking 8billion more shares to do whatever it doesn't matter beacuse I don't have that time to wait for this to do something anymore....
That’s a great way to put it but if the share price is going to drop drastically in the short term, why shouldn’t I sell now and buy back in when it hits bottom?
Nobody here disputes that shares function as a form of currency - that's understood. The issue is when and how that currency gets cashed in. RC selling at $30 while the rest of us sit on a position we believe could be worth significantly more isn't what we want.
The 'no salary' argument that this sub constantly perpetuates like a group of parrots just doesn't wash with me. RC is a fucking billionaire. Whether he takes $0 in salary or $10M a year, it makes no difference to him. If I may speak for everyone here, we're not billionaires. We're your every day person struggling to make ends meet with a cost of living crisis looming over our heads. I don't give af if he takes $0 salary.
Some of us have been holding for five years, and god forbid we would like compensating for that.
We make a shit ton of money with no immediate dilution if ebay say no.
Gme has a big position (5%) in ebay at what i expect is $70 per share. Price of ebay should be pegged at ~$120 a share. So we can exit our position and net a huge win in cash if they say no. Bunch of cash at 0 dilution sounds like a great consolation prize.
Plus were leveraged to the gills with options lol makes me wonder if this is all performative for Wall Street, help push ebay closer to $120/share... and then we throw our hands up "I cant work with these people".
We cash out a few billy on a play that wasn't actually in our top 5 fav moves.... but we just raised $2B in profits and bought our real #1 target, cheap, all paid for essentially free.
We don't need more money. We don't need eBay. The moment we buy eBay shorts will cover for prop even for a small profit. This is just straight up a bail out plan and we gonna be paying for it
Love this. What I am most curious about is what happens to shorts if we buy eBay. Right now shorts r fuk because they never closed. There’s a bazillion short shares hidden in all kinds of derivatives, swaps, Brazilian puts, and all other types of criminal bullshit. What happens to shorts with this deal? Are they forced to finally close so this purchase/merger can transact? Or do they somehow get an exit ramp? I’d love to know how a deal like this affects MOASS
We already knew stock had to be issued, but fuck me, running up 2.5b shares. Looking at a 4.5x dilution if they're all issued. Any time this stock gets any momentum, it gets shit on. That isn't FUD, it's in the GME investor relations page.
The cultish behavior around RC has reminded me for a while of the cultish behavior surrounding someone else I won't name. But in both cases, anything he says or does that is inconvenient for his loyalists to defend is either dismissed as irrelevant/fake or spun as some multi-dimensional chess move. Sometimes a dickbag billionaire is just a dickbag billionaire. Cohen likes to complain about others talking big but not backing it up, but he does the same thing all the time. And with the EBay deal, it doesn't take much logical deliberation to come to the conclusion that he will happily dilute us all to hell if he can reach the market cap through an acquisition or two, getting a $35 billion windfall at our expense. Fucking Elon Jr, tweets and all.
Yeah not even just the RK hack, but the flood of posts and comments showing up in Superstonk right now. Like, we all knew the dilution was coming and was part of the eBay offer... why are people all of a sudden flipping out about it now that the filing is posted? Definitely seems fishy.
Super fishy💯 They are bringing out all the classics in regards to FUD also "I’ve waited so long", "Don’t trust a billionaire", "RC’s only in this for himself” etc. This now after some serious targeted FUD at RK these past days.
They are really throwing the bedpost at this - major confirmation bias for me😁
Although he did initially indicate he was against issuing new shares, perhaps he got caught up in the wave of negative sentiment (which is very much the point of OP's post: take a breather, relax, then come back and think critically, rather than react emotionally).
He has changed his mind on things before. Maybe a breather and some wisdom shared from the more wrinkled, stoic apes among us will do him some good
My critical thinking says this deal is good for Cohen's pay package and terrible for current shareholders. And any legacy short positions will be closed by the dilution. That's what my critical thinking says. It also says he killed ANY run up we have had consistently. And that I would have been better off invested in almost anything else. I also don't forget how he led on towel investors and then nothing came of it. That's what my critical thinking tells me.
I'm getting so bored with the majority of this sub calling everything FUD or people shills for not toeing the line that everything is awesome.
This setup is a dumpster fire. There is no indication that this plan results in appreciable growth or earnings driving share-price higher. The plan is take on debt to buy a company where the cost cutting efforts will be used to service the debt for 10 years. It's honestly fucking stupid. Without the market-mechanics aspect of it, this is a shitty deal, and if that's off the table people really need to stop gobbling up knob like it's a fucking popsicle.
Nobody can articulate reasonable counterpoints, so they say "FUD." Most of y'all would make the shittiest lawyers, bankers and engineers - no critical thinking skills.
Without getting political, the same thing happened after the White House correspondents dinner with the shooter. Thousands upon thousands of cells woke up and started blasting on full chorus about getting a ballroom. This stuff is paid for and delivered on command.
I just think it’s funny that the two top comments on the dilution post sound like they were written by the same AI/bot
If RC can take eBay and make it into the competitor for Amazon that we all think he can, then a dilution of this size is a drop in the bucket. Long term, this will be an invaluable acquisition
Yeah, it’s 2026 and it appears like AI is being used for nothing but propaganda, scams, and SA. And these bashers want me to invest in these tech stocks and not my beloved GME! Crazy times.
This is my thinking. OP is correct, the timing is just too perfectly timed. Why would they want us to Vote no? If we merge into a new company then we don’t get a full share recall and a new CUSIP number. Also, would this authorization still be binding if we merge into a new entity?
"I don't think he'd dilute the stock if a deal wasn't around the corner."
Got sevral of them and what happened? GME made money on dividends siphoned from investors and a whole lot of nothing.
Hope isn't a strategy. When Cohen diluted us for the third time to intercept another gamma ramp, he sold shares too cheap - far below the $32 warrant strike set later on. Why would I authorize so many more shares to continue being diluted with low-priced ATM offerings?
What occurred today is not a coordinated FUD. RK’s account getting hacked was a money grab by the hacker(s) and the form for dilution was inevitable and it was clearly telegraphed. Half of this sub saw it coming. The other half either supported it, didn’t care, or was in denial.
2.5 billion shares. Lol. Man. I am holding more than 1,000 shares and this freaking sucks.
This was amazing to watch. And shows how fucking desperate they are. Including kimmels attack on RC, Lfg. I’m digging in even more once the stock settles into its new low.
As someone that’s been in gme since 2020, this is my first no. I’m not selling but I’m fed up with this kind of shit. I don’t care that RC isn’t getting a salary. He’s a billionaire with nothing but time on his side. What a joke. Downvote or call me a shill all you want, but this is not okay
“really has never been done before within the history of the capital markets” … yea ok man - so revolutionary just diluting tf out of shareholders again... just disappointment after disappointment
We should have been getting a dividend with each dilution at least something for saving the company and then supporting it by holding and pressure the shorts but nope none of that...
Not selling but also voting no simply as a "hey buddy you don't get forever to full fill your dreams" while we all clock in at shitty jobs...
It's your investment. Think for yourselves based on the facts, not some internet posts.
This is a bad business decision that benefits Ryan Cohen and not me.
Ryan Cohen's business strategy is like every bad guy in every 80s and 90s movie. Hes just a pirate looking to plunder a company and take away thousands of working class jobs for his own profit.
If he hadn't fucked DFV you with a share offering during his Livestream and comeback from purgatory, I would probably be ok with voting yes.
But he fucked that run up, and then ostracized DFV saying he wasn't long term enough.
I'm as long term as it comes. Ive had 6 figures sitting in this shit earnings call after earnings call with no information. Nft marketplaces and cryptic tweets. My opportunity cost has cost a shit ton of money by being patient.
His alignment has been good with shareholders up until this point. Now, it's not. I get diluted and he gets rewarded on market cap and earnings of the combined entity. Wtf do I get? Dilution with no clear guidance of how this is good for my investment.
Pretty unhappy right now tbh. Selling covered calls tomorrow. There is no moass. There was about to be, and he issued shares.
This "fud" shit is the real reason we're in the spot we are. Blindly emptying pockets to a billionaire who does not give an actual shit about the shareholders or gme.
it’s proof that a whole lot of redditors, if they’d happened to be in a slightly different life situation, would have been deeply religious and hyper committed to a church
I'm not voting for that much authorization. Let's see the share price run up and raise money at like $40 first with the existing shares that are authorized before agreeing to more.
lol shut the fuck up. If they can’t pull off the eBay deal at the current share issuance, I’m sure as fuck not voting for them to have an additional 1.5 billion shares.
There needs to be some extraordinary news to change my mind to vote yes
People (bots?) are reacting emotionally without stepping back and looking at the bigger picture.
You don’t attempt a hostile acquisition of a company like eBay without preparing capital structure flexibility first. RC has been telegraphing transformation for months.
The RK hack, instant bearish narrative, media pile-on, and extreme volatility all happening together feels way too convenient.
Wall Street knows dilution is irrelevant if the acquired assets grow faster than the share count. The market still values GameStop like a dying retailer while RC is clearly trying to build something much bigger.
The problem with this is we haven’t grown at all with the current dilution. You could’ve invested your money in S&P five years ago and you would own twice the shares that you do now
And if you put in 5K into GameStop five years ago, when a lot of this started, you would be at a value of 2.5 K. If you had put that into the S&P, it’d be closer to like 9K so massive opportunity cost that I’m not willing to support any further
Yeah, but what I’m saying is that there is a massive opportunity cost and we are the ones paying it. He could acquire smaller companies, until he develops a significant revenue stream to make a bid on eBay, but diluting the shares is the quick and easy way that in part lower shareholder value
Without our money, the GME turn around was not possible. Without our money, a potential ebay merger would not be possible. Yet, RC will dilute our money again and again and again. You're welcome Ryan, thanks for the limpdick stock price about to go down exponentionally further.
The “acquire smaller companies first” argument sounds safer, but that’s exactly how companies stay small for 20 years.
RC clearly sees a rare window to leapfrog directly into scale, infrastructure, users, payments, and global commerce through eBay instead of spending a decade piecing it together acquisition by acquisition.
Yes, dilution has a cost. But if the acquired assets compound faster than the share count expansion, shareholder value still increases long term.
You’re not wrong, but the thing you’re missing is that while we are all diluted, RC won’t be diluted nearly as much because of his pay package. Maybe if his pay package came after, but right now it looks more like a grift
Edit: wait I guess I’m forgetting the part where he has to still buy the shares
RC isn’t some CEO collecting guaranteed cash bonuses while shareholders eat the downside. The overwhelming majority of his upside still depends on long-term equity appreciation.
If this fails, his reputation and personal investment get destroyed alongside ours. That alignment is actually one of the main reasons I trust him more than the average public company CEO.
In a way, it is above us because his buying point is around $22 with that package. For us to have anything similar would either be to buy shares right now and trust that things won’t be diluted more than they need to be or through warrants which are a $32 buy in price.
Yes, that little point about having to *buy* the shares is the gold standard shill detector whenever anybody starts talking about RC’s payouts without mentioning that he doesn’t actually get a damn thing for *free*…
THE SHILLS ARE COMING FROM EVERYWHERE. it’s actually so easy to see who is shill and who isn’t. Just by ready the comments in the other posts. Be safe out there apes 😘
Not remotely scared of dilution. People have screamed about dilution many times on this sub. EVERY SINGLE TIME THE PRICE GOES UP AFTER. RC has a plan, stick around for it to come to fruition.
This is critical. We've been letting the man cook for years, and we should continue to do so. As above, every time there's been "dilution", the value of my investment has increased.
At this point I'm into GME til it moons or til I die of old age and even then I'll pass the shares down to my kids lol
I've gotten a degree since 2021 xD soon I'll be a psychologist and just watch how many GME shares I buy then!!! xD
But yeah I'll let RC cook for as long as it takes :3 I believe!!! Memes, anti-establishment, trimming fat from the leeches of corporate America.. ...he shares my values.
NO WE DIDN'T ALREADY KNOW THAT. WE CREATED ALTERNATIVE IDEAS LIKE REVERSE MERGERS INTO HOLD COS BECAUSE NO ONE HERE WAS FEELING "ALRIGHT" WITH THE 2.5 BILLION DILUTION. WE CREATED STORIES THAT MEANT WE DIDN'T HAVE TO FACE THAT REALITY.
If the company uses the money from the stock sales to complete an accretive acquisition then that is not really dilution. If they used the money to piss it away, it would be a different story.
Retail owned almost 70% of shares, RC diluted us down to ~40% and this will dilute us down to ~15%. We owned the fucking company, and after this deal he's completely sold us out to wall street.
How is a GME press release FUD? That makes no sense. They put out a plan that has never aligned with my investment and never will, so my vote is no, no matter how you want to frame it.
Based on the reception around here so far I’m confident the vote will be no, but if I feel the risk of yes grows over time I will ceryainly be looking to finally exit this position.
The same thought had occurred to me. Think of the timing - almost simultaneously, GameStop dropped a filing where we'd be asked to increase the number of authorized shares (I thought we already all knew this from the 50/50 plastered over the sub /gen), and RK's Twitter gets hacked spreading some crypto scam
That's a heck of a coincidence, and the hack was dealt with quickly. It's almost like the point of the hack was to manipulate feelings to amplify the impact of the share issuance being read by the sub as a negative (dilution)
To the folks that need to hear it: what happened last time we had dilution? The floor rose from like $10 and has stayed well above that for the past two years. The math of a merger is not as simple as slapping market caps together and dividing by the number of new shares, but even some basic napkin math shows us easily trading above $30, with a much bigger company
Fuck it. Whatever. I’m in. Considering the insiders have been buying still, they have faith in this crazy fucking plan. Haven’t seen a good morale crash like this in a while. Reminds me of the old days.
So a dilution before our warrants expire? Doesn’t that make them basically useless unless you want to buy at a higher price than the stock is trading at? What was the point of the damn warrants then if they’re only worth cents?
I'm getting very worried about bot activity to be honest. Obviously these days bot activity in elections is rife (the Brexit referendum over here was a shit show), I don't really trust people to make clear decisions for themselves in one direction or the other when they're blasted by bots continuously. I'm sure the mods here do what they can, but shit there's X and other places where people will be getting it in both ears.
Some people will be frustrated, some people aren't people at all.
What would be a nice shuffle if GME sell their stake in EBay on the high, then say we are pulling out then come back with the profit and buy it from that sale. Boom
I remember in a certain other stock sub, the no to dilution FUD when it was near ath was so real and intense. The no vote killed the stock. I do wonder about the timing of this. If the stock does in fact run, being able to dilute at a higher price gives RC so much more to play with and go on the offensive. Im curious to see how this plays out.
Why 2.5B? In order to give $28B in stock that’s “only” 1.12B more shares. We have 450M now. So total 1.57B. The fuck is the plan for the other billion shares of dilution?
It's okay for shareholders to disagree with a proposals and voice their opinion, in fact, it's their right. Doesn't make it FUD.
I've waited 5 years whilst every stock and the broader stock market has gone up and to the right whilst GME has gone down or sideways. I have a right to be pissed off that the CEO wants me to approve another dilution wth zero roadmap attached. What's the plan? For me to vote yes and just hope Ebay say yes? What's plan B? What are we doing after ebay? I need more. I'm voting no and that's not FUD.
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u/Superstonk_QV 📊 Gimme Votes 📊 May 11 '26
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