eBay rejects GameStop’s $56B offer: “Your proposal is neither credible nor attractive”
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“Your proposal is neither credible nor attractive”
Look you don't have to send a DM just swipe left.
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That CNBC interview is.....something else, man. The CEO has the charisma of a turnip, and interviewed about as well as one, too.
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Honestly when this story first broke I mis-read the headlines as saying Ebay was buying Gamestop. Which is something which might not be a great decision but at least is inside the realm of plausible.
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How would Gamestop run eBay?
"So you're posting Grandma's china set. It sold for $150 in 1957, so you can place it for sale for $145, or if someone offers three other china sets in trade, they can have yours for $75. Let the bidding begin."
"So you're posting Grandma's china set. It sold for $150 in 1957, so you can place it for sale for $145, or if someone offers three other china sets in trade, they can have yours for $75. Let the bidding begin."
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When the CEO of a company says they aren’t passionate about their company and would much prefer to be running this other company… you need a new CEO, like effing yesterday. Fire that clown.
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STOP quoting my girlfriends, Paul Pressler !!!
Wait, what ?!? How on Earth... I SAID - STOP !!!
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This is disrespectful to turnips. They serve a useful function in society! CEO man does not.
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Then why the f are you still there? Also after a statement like that why the F hasn't the board let him go...
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I love sickass burns in polite corporate speech.
I have no idea why you would ever admit to not being passionate about your own job and wanting to take another job. That's like telling your wife you wanted your high school sweetheart and settled for her.
I have no idea why you would ever admit to not being passionate about your own job and wanting to take another job. That's like telling your wife you wanted your high school sweetheart and settled for her.
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I dunno, maybe we should ask the chairman of the board? He appears to be a Mr., uh, R. Cohen.
I think I see the issue here.
(this is not a gag post, Mr. "I wasn't passionate about GameStop" is the board chairman and CEO of...GameStop.)
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They'd offer pre-sale and reserve yours today. Then the management would keep all the nice products scalp them themselves for extra cash, and leave the buyers hosed without a product but locked in chatbot support hell unable to get their money or product.
Actually, having typed that out... it now seems like a lot of modern companies are already implementing the GamesStop model..
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That interview is still incredibly baffling.
"Half debt financing and half Gamestop stock adds up to $40 billion, but your offer is for $56 billion. Where are you getting the extra $16 billion?"
"I don't understand, it's half financing and half Gamestop stock. What's the problem?"
Either he's really stupid and innumerate or he thinks everyone else is really stupid and innumerate. Neither is an attractive prospect.
"Half debt financing and half Gamestop stock adds up to $40 billion, but your offer is for $56 billion. Where are you getting the extra $16 billion?"
"I don't understand, it's half financing and half Gamestop stock. What's the problem?"
Either he's really stupid and innumerate or he thinks everyone else is really stupid and innumerate. Neither is an attractive prospect.
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From what I understand, he is also chairman of the board and he fired the previous CEO because the board, perhaps Cohen himself, did not like the way he was running things so he took it on directly. I don't think he has actually ever wanted to be the CEO.
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There are also not mutually exclusive... so maybe "both"
Wouldn't that put him firmly in the position to do something about it and, I don't know, HIRE a CEO then, perhaps one that wants the job?
(to be clear i think this whole situation is farcical and this guys is an idiot, my snark is directed towards the idiot in the c suite, not you or your relevant and informative contribution)
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Statistical
Ars Legatus Legionis
This is corpo-speak for "LOLZ. Get the frack out of here and stop wasting our time you loser."
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So basically, the plan is a leveraged buyout of a firm with 5x the market cap, because the dude is bored at his current job? That's some pretty serious chutzpah there. And I don't see how this in anyway would get GameStop's market cap to the target $100B.
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Statistical
Ars Legatus Legionis
He is the CEO of a failing game pawnshop that only has value as a memestock. He is use to memestonk idiots treating him like a superhero. Any actual business skills he may have once had had love since atrophied.
He is use to just being able to make up random nonsense and everyone goes along. This is his first time outside the memestock zoo and the response was predictable.
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Statistical
Ars Legatus Legionis
It would get it two thirds of the way. Well if he managed to not piss away shareholder wealth which is not certain. Inflation alone likely could close most of the remaining gap.
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If I were GameStop's board, I would begin a serious inquiry into replacing this clown. He's tarnishing what's left of the brand and is clearly not interested in any fiduciary responsibility.
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Seems like a very big "if", there, to be honest. I mean, it might get there momentarily?
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Taking this:
Which to me says he shouldn't be running any company at all. But GameStop can't really fire him since whoever would replace him would likely cost the company a hell of a lot more. It's a meme-supported vaporware business whose income is derived by viral trends and bullshit.
I can't speak to eBay's stuff, since I've done nothing eBay for nearly 15 years, but I figure their response was right in that there's no way GameStop can actually pay what they offered for eBay. It's like a minnow trying to swallow a whale. It ain't gonna happen.
and this:
I'd say the man is more interested in the $35 billion than he is in running ANY company and will drive everything into the ground to get it if need be. Market capitalization is today's new fraud that creates companies which produce shit and still stay in business because VC funds are counted as "income" today instead of the debt it functionally is over time (assuming the investment funds are expecting returns on the cash they throw at the company).
Which to me says he shouldn't be running any company at all. But GameStop can't really fire him since whoever would replace him would likely cost the company a hell of a lot more. It's a meme-supported vaporware business whose income is derived by viral trends and bullshit.
I can't speak to eBay's stuff, since I've done nothing eBay for nearly 15 years, but I figure their response was right in that there's no way GameStop can actually pay what they offered for eBay. It's like a minnow trying to swallow a whale. It ain't gonna happen.
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That reasoning doesn't sound correct: the "half in stock" would be stock of the new combined company. It's anyone's guess what the eventual market valuation of the combined company would be, but that doesn't really matter: the deal is for stock, the $55 billion is just a current estimate of that stock's value.
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I'm not characterologically one of the hardcore eat-the-rich folks, but the ratios of these numbers are difficult to wrap my mind around. Imagine telling a manager of a McDonald's that he would be paid 3.5 times the store's total annual sales if he hit such-and-such metric. How sky-high that metric is almost doesn't matter. It's an insane concept.
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I have to assume that at this point GameStop's board is almost entirely composed of gamestonk bagholders who are still yolo dimondhanding since 2021.
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Ars Legatus Legionis
Well it is earnings not sales but even crazier it is CUMULATIVE earnings. So earning $1B a year for 10 years = $10B and he gets $35B.
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Because Ryan Cohen fandom (yes, that is a real thing) is literally the only thing propping up GameStop's share price. The second he's gone, GS's shared fall into the toilet.
OK, it might take a bit longer, since a lot of the bagholder's GME shares are directly registered, so it will take a few weeks to make them sellable. But Cohen leaving GS would have basically the same effect on the market as Musk leaving Tesla.
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I mean, they technically have a fiduciary duty to their shareholders to at least explore the offer. This was just them getting in front of potential investor complaints (in the correct, and a quite hilarious, way).
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When is the vote of no confidence?
It's one thing for a manager to be like "I don't even WANT to be here" but the f*cking CEO!?
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I want to be CEO of Ferrari. I'm passionate about Ferrari. I believe in Ferrari's business. I'm not passionate about my current position.
... said many a teenager.
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Oh, is THAT what she's on about? Whew, I thought it was something serious.
LLM told me she would appreciate the honesty, especially on 14 Feb.
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Are there situations where this is not the case in modern corporate america?
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Jakelshark
Ars Tribunus Militum
it's funny to me that his idea was the joke idea from 40 Year Old Virgin
View: https://www.youtube.com/watch?v=FNsFEhHLlHA
View: https://www.youtube.com/watch?v=FNsFEhHLlHA
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I'd like to know more about the "hostile bid" and going straight to shareholders. I have no idea how they think that will work when they don't appear to have the financing to begin with. I've stumbled upon some of the posters on the subreddits and I honestly don't know how many of them are just trolls, and how many of them are serious. Is a bit insane. Hostile takeovers work when you can overpay and get the shareholders on board. You don't just do a hostile takeover because you want to. Thats not how the real world works.
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