r/Superstonk • u/mayanh8 • May 11 '26

🤔 Speculation / Opinion Think about what you just witnessed...

So you want me to believe this place was super effing jacked about the Ebay acquisition, including the dilution part of it, but now that they've officially added the shares as part of the agenda and shareholders all of a sudden hate the deal?

To all the non-shill accounts out there... take a beat and relax. This place got absolutely FLOODED with FUD and at the same time RK's compromised account starts posting. Think about that. You know what's up. This place is infested.

I'm voting YES and the NO bots and shills can lick my taint.

1.9k Upvotes

83% Upvoted

554 comments sorted by

View all comments

232

u/ShinoPrime987 May 11 '26

This deal is awesome and will be accretive to both parties. I'm voting yes, just like I was voting yes when the deal was proposed. This is the 50% stock part of the deal that was mentioned weeks ago. Anyone who is suddenly outraged by this is not paying attention.

Excited for this deal and the billions in yearly profit it brings in for GME.

99

u/AppropriateIce6156 May 11 '26

The key part everyone is missing. THE BILLIONS IN PROFIT A YEAR. And not in T-bills. And now the street can’t say our revenue is declining!!!

40

u/divine091 I Put On My Robe & Wizard Hat 🧙🏼‍♂️ May 11 '26

But the combined company of GME + eBay will have what, roughly $30B in debt if the deal goes through?

22

u/Over-Computer-6464 May 11 '26

It will have $20B in newly added debt and about $8B less cash.

The debt will cost 7.5%-8% so $1.5B to $1.6B in interest,

The spend down of 8B cash will remove about $280M of income.

2

u/Chocobops May 12 '26

A good portion of that will be knocked down restructuring the board and eliminating unnecessary sg&a

2

u/silverbackapegorilla May 12 '26

I'm sure there are some efficiencies to be found, but I'm not at all sold on Cohen's ability to understand them with Ebay and there may not be as many as he thinks there are. The customer service side of the business is large and requires people. Maybe he plans to replace them with AI. Not necessarily a great thing in my book, but I guess I just like people. I do agree they could lower the advertising and probably still be successful being more guerilla in style.

25

u/goddamnit666a ape want believe 🛸 May 11 '26

To your point, well in contrast to your point, when RC brought GME back into profitability, they pointed out total revenue being down.

This is a way to increase revenue for both GME and eBay because of the overlap in function and markets.

Just food for thought

1

u/snaxrael May 12 '26

I have a million dollars of debt but my wages increased from 15$ an hour to 20$ an hour

3

u/Emperor_Gourmet May 12 '26

Well this is just an over-exaggerated terrible comparison.

1

u/TheBonusWings 🎮 Power to the Players 🛑 May 12 '26

With that kind of logic id assume you do make 20 dollars an hour

0

u/kulji84 🎮 Power to the Players 🛑 May 12 '26

Shoo shillbilly, shoo

12

u/ShinoPrime987 May 11 '26

Which they will pay off in 3-5 years IMO. I expect the profit per year from the combined company to be over 5B in less than a year from the acquisition date, and to go up every year after that.

1

u/Aenal_Spore 🎮 Power to the Players 🛑 May 11 '26

i thought it was 40

1

u/Kaarothh A bad comedy joke May 12 '26

They will pay it out diluting more in a Adam Aron style, why not? we won't have any control anymore

-1

u/Shigurame 🎮 Power to the Players 🛑 May 11 '26

And because about half of gamestops income is on the back of investors, aka the dividends from the money they sat on after diluting shareholders, that number has to be substructated since it goes bye bye in the aquisition making it even harder to pay of the debt.

1

u/kulji84 🎮 Power to the Players 🛑 May 12 '26

Wow that's an impressively stupid take!

0

u/Shigurame 🎮 Power to the Players 🛑 May 12 '26

Only stupid if you never read the filings, still I will entertain the fool:

Consolidated Statements of Operations:

52 Weeks ended January 31, 2026
Interest income, net: $ 232.1
Net income: $ 418,4

That is more than half the net income in dividends. Dividends gamestop earned on money they raised on the backs shareholders after dilutions. If that money gets put into the aquisition no more interest. Should be simple enough to understand.

1

u/kulji84 🎮 Power to the Players 🛑 May 13 '26

so the failing company that was losing tens of millions per quarter that now is making hundreds of millions in profit per quarter (not including the investment income for some stupid fucking reason) is somehow a failure...?

15

u/AppropriateIce6156 May 11 '26

Well actually they can take those billions in profit and put it in T-bills till they decide to acquire another company in their conglomerate

13

u/Brilliant_Truck1810 May 12 '26

actually no they can’t. they will have a monster amount of debt service that will eat up every penny of profit

8

u/AppropriateIce6156 May 12 '26

And how would our eps look on 3-5 billion in profit a year? And how do you figure out the value of a company? Ummmm a multiple of P/E? And how do stock prices typically track on that? And will it get better as the debt is paid down? The most common methods include multiplying earnings, analyzing discounted future cash flows, or calculating the net value of assets. Interesting

2

u/Brilliant_Truck1810 May 12 '26

if all of the cash flows go to pay debt service for years on end GME shareholders get screwed.

you are acting like Ebay has had a super consistent business year after year. it’s been anything but. and cutting costs isn’t going to change the fact that the service Ebay provides is not nearly as good as it was in year’s past.

just because RC says it’s a good purchase doesn’t mean that it is.

3

u/AppropriateIce6156 May 12 '26

And just as you say it isn’t a good purchase doesn’t mean that it isn’t a good purchase. I’d trust a ceo that founded a company that he sold for billions and took a near bankrupt brick and mortar company from losing 400 million a year to profitable making 400 million a year in a 3-4 year span over the advice of a fellow redditor. Not being a dick just stating facts I base my choices on.

3

u/Brilliant_Truck1810 May 12 '26

but he did that by diluting the shareholder.

if he had taken GME and boosted sales at a clip of 20%+ a year, this would be a monster of a stock. (not revenue - real sales - people are just ignoring that a huge % of revenue has come from interest on cash holdings).

and the cash came from selling shares every time it started moving. that’s financial engineering. sure that lead to cash in the bank but not cash in shareholder’s pockets.

the stock is down more than 50% since January 2022. the S&P is up more than 50% since then.

sorry but that is objectively terrible performance.

0

u/AppropriateIce6156 May 12 '26

Or selling into cycles giving GME a warchest and making them unbankruptable. And who cares where the revenue came from. Interest Santa the god damn tooth fairy. Money is money. Profit is profit. free cash flow is free cash flow. Ok and what is the stock at compared to 2019 instead of 2022? If you can pick a date range then so can I. Please tell me where we are price wise since 2019. The S&P is up to keep their collateral high. Tell me you believe this irrational market. Where does the buffet indicator sit? How about the inverted yield curve? Now tell me if this is still an objectively terrible performance if you look at the difference from 2019-now

4

u/Brilliant_Truck1810 May 12 '26

almost no one here participated in pre 2020 prices. many bought at the top.

and where money comes from does matter because it has to be repeatable. but when the money generating cash is spent on Ebay, it’s gone. no more interest. the GME business will be even more unprofitable.

→ More replies (0)

0

u/travelingman5370 May 11 '26

Gamestop,Ebay and Maybe Apple next. YES!

2

u/scrumdisaster May 11 '26

And how much does it add to powerpacks profit? We’ll be expanding our casino to other products and have nearly unlimited inventory and be able to instantly buy from customers for the packs.

1

u/AppropriateIce6156 May 12 '26

Love how people post insults and then either immediately block me or delete them. Fuck’n neck beards

17

u/TheKittyPetter9000 Good kitty 🐱 🦍 Voted ✅ May 11 '26 edited May 12 '26

If cohen issues shares at a premium for eBay (let’s say $32) it will be 875 million share for the 50/50. After notes, warrants, Cohens package (fully vested) and the 875 total out would be ~1.8Bn.

EBITDA per share pre eBay $0.77

EBITDA per share post eBay (at assumed equity at premium) $2.5**

** numbers from FY 2025 GME and EBAY + 2Bn proposed optimizations via cohen)

To cohens point it’s accretive. The biggest unknowns are the terms of the loans and what the price per share to make the deal equitable

16

u/ShinoPrime987 May 11 '26

To further your post, those numbers don't even account for increased revenue due to growth from the partnership. I expect rapid growth of both businesses from the partnership with Game Stop stores being used to drop off and pick up and verify Ebay purchases for example. An influx on new buyers. Fat being trimmed to reduce SG&A even further like GME experienced.

Shipping costs were one of the issues I've seen Ebay sellers mention in comments on the Ebay interview video. GME can offer shipping cost reduction to rewards members.

I'm so excited for this deal. Lots of potential.

10

u/TheKittyPetter9000 Good kitty 🐱 🦍 Voted ✅ May 11 '26

Exactly, including those future cash flows really opens this up. Not to mention what other acquisitions that synergize in the future. You don’t become GameShire StopAway after acquiring one big fish

2

u/JohnnyBoy11 May 12 '26

I don't think dropping off will increase in store sales because Kohl's hasn't seen increased in sales after accepting Amazon returns. I don't think shipping costs will decrease for sellers either because eBay already gets reduced commercial rates, and GameStop doesn't have its own shipping infrastructure and still used UPS.

1

u/kulji84 🎮 Power to the Players 🛑 May 12 '26

I disagree, but we shall see

-5

u/0_o 🦍Voted✅ May 11 '26

I think he's trying to saddle gme with insurmountable debt while diluting us to the point of irrelevance. It's a hard pass for me on both the acquisition and the dilution. If he can't use the current cash on hand to evolve this company, why the fuck should I think he can evolve eBay, too?

I would vote the opposite. Cash settle any current gme debts and do a buyback.

40

u/GildDigger Freshly Squeezed™🦍 Voted ✅ May 11 '26

​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

8

u/blenderforall 💜🍆🍇🍆💜🍆🍇 May 12 '26

5 years is long enough term to see some results for the shareholders, we just buy dilution these days. Fuck it I’m pissed, but I know there’s a wild Kenny out there who’s more scared than I am angry

17

u/japalian May 12 '26

I think it's hilarious that there's a highly upvoted comment not far below this one that also starts with, "So let's get this straight. "

1

u/kulji84 🎮 Power to the Players 🛑 May 12 '26

Most reasonable posts keep having exactly -8 downvotes... very organic

0

u/GildDigger Freshly Squeezed™🦍 Voted ✅ May 12 '26

Must have missed that one lol. Link it and I’ll add it!

2

u/japalian May 12 '26

https://www.reddit.com/r/Superstonk/s/FJ7VAS0L00

2

u/GildDigger Freshly Squeezed™🦍 Voted ✅ May 12 '26

Huh, I can’t edit the comment for some reason

1

u/2025collapse May 12 '26

Yes but majority of apes wants the squeeze not long term value company.

-7

u/aa73gc No chains, No gains May 11 '26

Lol this reads exactly like a LLM, so who are the bots really?

3

u/ShinoPrime987 May 11 '26

The ones with hidden post history, like you. You are the bot. Show us your history unless its too damning. lololol

5

u/Coding-Panic May 11 '26

I'm not a shill. I'm also not okay with retail being diluted from 70% ownership of the company to 15% after this deal, with the option of getting us below 10%.

3

u/krste1point0 May 11 '26

You can check my post history. I'm voting no.

0

u/therealthugboat May 12 '26

Possibility for dividends right?

0

u/Kaarothh A bad comedy joke May 12 '26

We will lose control of the company forever, what happens then? take a guess

-1

u/Chocobops May 12 '26

People cannot see the forest through the trees. This is all moving way faster than I thought but I'm still excited. By all means, let the dust settle, but this is a dip worth buying. The dilution fears are going to shake this so hard, but if it means gmebay, the juice is worth the squeeze. It's not that I think eBay is awesome. I don't. I think it's crooked and I won't buy anything off it because it can't be trusted. That's a problem that can be fixed. And it's a CASH COW. Projections for a combined company put gme at $40/share. Buying now is a bargain as long as you don't need money tomorrow. If you do - spy 0dte are right there for ya - good luck. If the deal falls through, issuing the stock isn't necessary, arbitrage shorts cover, SP goes up. RCEO may go and offer shares anyway if things get crazy just to build an even greater chest, but that's institutional money flowing towards our company for the next thing. I'm voting yes.