Good thing I cashed out after only losing most of a couple hundred dollars 😆😭
I don’t understand how this deal can even happen
GameStop is only worth 11 billion. Trying to buy a company worth 5x what they are…
They’re offering half cash (which they don’t have, because they’d be worth at least 25 bn if they did), no one is going to lend them that much money, because again, they don’t have the collateral to support it.
And they’re thinking they can sell more of their own stock to raise funds…diluting their current stock, which would require they sell 3x their present value in stock to acquire??? Diluting their current shares in the process.
All leveraged buyouts ought to be illegal, not just this one.
Leverage buyouts are just a symptom of the problems in the system
In theory, leverage buyouts make perfect sense, kinda like a mortgage. You get a loan to buy something with that same as a collateral.
The fact that these usually ends in worse conditions for everyone is not because leverage buyouts are the problem, but the private ownership. Toys r’ us should have been owned by the workers, man utd by the fans, as so forth
Cohen added that eBay’s earnings power could increase materially under tighter cost controls, arguing earnings could potentially double over a relatively short period.
Okay, yeah, he’s fucking delusional.
(Also, ‘GameStop stock sinks’ feels like a mild tongue twister.)
Did it?
Considering the linked article is dated from the 4th, where it went from nearly 28 down to 23.40, that’s nearly 20% drop.
Considering when OP posted this, it makes it seem like ancient history happened today.
I think they just made their post title the same as the linked article title, which generally seems to be the accepted “thing to do” on Lemmy. The OP also hasn’t said anything in the comments - seems like a lot of posts are just bots linking to maybe-relevant articles?
Market runs on vibes
An 11% drop is not small.
It recovering the next day doesn’t mean the drop didn’t happen.
Any type of announcement = dip for gamestop
Is it time to HODL or Buy The Dip again?
That drop was people selling the spike. If you wanted to buy the dip, you missed it.
I got no idea how stock markets work. I’m in it for the memes.
Actually that was me buying the spike. Get in line noob.
You’re an animal. FYI, my significant other wanted me to tell you they haven’t heard from you in a while and they miss you. I know you’re busy rocking the financial world, but can you spare a moment from that to rock them too? Thanks.
Buy high, sell low! Thats the hobo way!
Gotta get them tax breaks somehow!
I sold after the CEO came out as racist, made a whopping $5
Link?
Go away GME.
How is gamestip still even a thing? I havnt bought a physical game disc in years.
I try to buy physical copies since it generally costs the same and I don’t have to worry about losing it due to some licensing bullshit or account issue in the future. Other retailers like Best Buy and Target don’t really stock many games anymore either so it’s about the only place left to buy them.
You’re much, much better off buying a GoG digital copy if they sell it, and backing the installer up.
Physical disks have DRM, and most of my old physical disks are useless now. New ones are likely even worse.
That’s a fun theory, but the discs have so little to do with most gaming these days anyway I think you are just as likely to get hosed due to some licensing or account bullshit with a disc as you are without. Seems less and less games work just from the disc every year.
Yeah the real fix is probably gonna be the stop killing games movement, since it seems like the issue is more that publishers seem to have forgotten what a purchase is and less so the difference of physical vs digital.
By fleecing rubes it seems.
Thankfully for Gamestop, the market of people interested in buying physical game discs is larger than you alone.
Most of GameStop’s inventory has shifted to being gaming accessories, trading cards, and merch anyhow, so game sales are less important to them than they used to be.
There are people who are stuck in the circle of selling back old games to help pay for their next game.
The proposal raises immediate questions about financing. GameStop’s market value is only a fraction of the roughly $56 billion implied deal size, and while the company has lined up a $20 billion financing letter from TD Bank, the funding gap remains substantial.
Cohen offered limited clarity on the structure during what at times was a combative and awkward interview, repeatedly directing viewers to the company’s website for details.
“We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done. But the full details of the offer are on our website,” Cohen said. “We will see what happens.”The black leather jacket is not helping
Nice 🍿
