Amid falling revenue and store closures, GameStop wants to buy the much larger eBay.
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GameStop offers $56 billion for eBay, struggles to explain how it’ll pay for it
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Still waiting for the magic move that's going to make the stock Warrants they issued last year make sense.
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I’m smiling a little at the creativity of the idea, but in reality I’m not sure many people have so much difficulty selling their second-hand crap that they’d be willing to travel to a physical location, and pay the kinds of commissions required to generate a profit for GameStopBay under this model.
I’m not sure that classifieds is a deeply monetisable user base, outside of embedding the functionality into a larger, profitable data-harvesting product portfolio a-la Facebook.
I’m not sure that classifieds is a deeply monetisable user base, outside of embedding the functionality into a larger, profitable data-harvesting product portfolio a-la Facebook.
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Yeah, and what was once the best commercial aircraft manufacturer in history has lost the confidence of the flying public. Anyone want to fly a 737 Max?
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There was a story today about an airliner clipping a semi-trailer on approach in Newark:
https://www.theguardian.com/us-news/2026/may/04/united-airlines-plane-newark-airport
Two thoughts:
- Insert joke about Italian drivers.
- Of course it was a Boeing aircraft.
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almostinsane
Ars Praetorian
Why stop there? Trump has a piece of land to sell you for the right price......
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I would have said because it's a meme stock, and this news has got us talking about them, which is good play a meme stock... but this time the markets haven't bit: "Shares of eBay climbed about 5%. GameStop stock sank 10%." Ouch! "GameStop stock sinks after surprise eBay takeover bid, Cohen’s combative CNBC interview" https://www.cnbc.com/2026/05/04/gamestop-ebay-takeover-bid-ryan-cohen-gaming-retail-ecommerce.html
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All I can hear is a completely blazed Jesse Pinkman trying to explain voodoo leveraged buyout economics.
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To be clear, you can't just "create shares". I mean, you can, but, since the valuation of your company does not change, the value of each share is reduced accordingly. In other words, the total amount you have to work with does not change just because you add more shares to the mix.
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I mean yeah but the same could be said of companies like Tesla.
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Brick and mortar stores come with huge expenses, though. eBay has become the dominant force in its field without them; I really doubt that they would be able to attract enough new customers to justify the cost. (And I’m saying that as someone who still does most shopping in plain old stores, because I happen to have a good selection of those nearby.)
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So as a decently large Internet seller who has sold millions on every platform from Amazon to eBay to tcgplayer.vom, the reason they all went out of business is the nominal fee is pretty high because everything about that process is labor intensive and can't really be automated in any relevant way. Item intake, inspection, photos and listing building, etc all take a shocking amount of time for used goods and mistakes are on the startup not the seller so you need high margins to cover it. I don't know anyone who does that consignment for under fifty percent because of all that.
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I'm tired.
I'm so fucking tired of these stupid stunts to try and squeeze that last tiny little bit of hype out of the stonks, so people who are already incredibly wealthy can attempt to minimise a minor hit to their personal fortunes by dumping whatever they're holding and then leaving the dumbarse bagholders to take the inevitable fall.
I'm so sick of all the greed and stupidity and stupidity-powered greed. I wish humans were better than this, but evidently we're just not.
I'm so fucking tired of these stupid stunts to try and squeeze that last tiny little bit of hype out of the stonks, so people who are already incredibly wealthy can attempt to minimise a minor hit to their personal fortunes by dumping whatever they're holding and then leaving the dumbarse bagholders to take the inevitable fall.
I'm so sick of all the greed and stupidity and stupidity-powered greed. I wish humans were better than this, but evidently we're just not.
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Looks pretty much like the approach the Glazer family used to take over Manchester United. Should be illegal.
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As a buyer, you get to see all the fine merchendise that GameStop has to purchase, like Pokemon cards, and Baseball cards.
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Wow. Is Ryan Cohen by any chance also marketing "Tres Comas" tequila?
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Sure, it is less than 1% of the total listings -- but what sort of market do used oil filters really have!!??
I suspect part of that might just be that my overhead selling some random object that was collecting dust in my house is pretty small. I'm not paying myself for the time spent, I paid for the item a long time ago, I'm not figuring any "warehousing" costs, etc. My costs boil down to ebay's cut (like 12-15%) plus shipping costs.
Even with Amazon being a super efficient operation, they have to account for all of the costs that I get to handwave away.
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This stock performance is common on LBOs: The purchaser drops, the target rises. Has nothing to do with the specifics of this proposed purchase.
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I guess what I was thinking was that it merely becomes an option to be able to go somewhere and off-load the work, not a full-on 100% replacement for putting up your own listings.
Really not any different than bringing your loose items to UPS and having them package them up and ship them for you. They added that as a service and it didn't replace packing up things yourself.
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That's not true really.
When you create shares and sell them, you get cash for them. That increases the value of your enterprise. In an idealized efficient market
this exactly offsets the dillution and the share price doesn't change.
In the real world, it depends. First off, there is no single true price for a stock, there is some elasticity to the demand curve. So increasing the supply may tend to lower the market price, but not proportional to the dillution. But more importantly investors treat this as a signal. For a small but growing company investors moght think management will be able to use the money effectively to grow faster. In that case the share price can go up. On the other hand if they are in trouble and trying to fund desparate longshots instead of effectively managing their current business it's a negative signal.
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FedEx Office tried this a few years ago, parterning w/ eBay to offer one-stop eBay sales locations. Mostly pack & ship service, could also list it online for you for an extra cut. The program did ok I think, but wasn't popular enough to justify the effort.
Also people didn't tend to bring in their regular in-a-box items, they mostly shipped those themselves. They brought in the stuff that suuuucked to pack instead, and made FXO put in that effort instead. Hard to make money that way.
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I used to buy games from Gamestop back before Steam was a thing but as an investment, Gamestop has always been a joke. They seem to be determined to drive that point home even more. Wasn't April Fool's day a month ago?
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Because casinos are for poor people and don't let you stake multimillion dollar corporations on bets.
When you boil down all the financial money moving around down to the core of what is being offered and promised in these buyouts, it's always this one specific bet made to the bank: "I bet that I can squeeze more money out of this company than the owners expect. If I'm right, I share the winnings with the bank. If I'm wrong, I gut the company and sell it for parts to cover the bank's losses."
Is this a terrible fucking idea where the results start at 'significant damage to the economy' and end at 'catastrophic damage to the economy'? Yes, yes it is an insanely bad idea with no social or macroeconomic upsides. Why does it happen anyway? Because the people in charge, the bank, the company owners, and the egotistic gambler, don't lose anything. What's the best way to stop it? Illegalize the practice outright. There is no good reason to let anyone take on debt to buy a company post-IPO.
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Is this GameStop hedging its bet on the FUNKO empire collapsing?
They even said "We sell Collectibles" as a point for the purchase to make sense.
You used to be a Game store. Now it's just Plastic Figurines Inc. and when the Plastic stops being tenable product (plastic production can't be good with the MidEast situation) what are you going to switch to?
The market is dropping Physical Media as distribution and you can buy direct from Supplier for Consoles now.
And saying to the company you want to purchase "Your marketing sucks" isn't exactly flattering.
They even said "We sell Collectibles" as a point for the purchase to make sense.
You used to be a Game store. Now it's just Plastic Figurines Inc. and when the Plastic stops being tenable product (plastic production can't be good with the MidEast situation) what are you going to switch to?
The market is dropping Physical Media as distribution and you can buy direct from Supplier for Consoles now.
And saying to the company you want to purchase "Your marketing sucks" isn't exactly flattering.
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I'm not familiar with jokes about Italian drivers. I've heard jokes about Asian drivers and Women drivers, but not Italian ones. Are they just as inaccurate?
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As long as someone needs money for meth GameStop will be around!
But seriously with the move to digital video game stores became less aspirational and more depressing. Although I am sure people have always tried to pawn off their roach infested PlayStation.
But seriously with the move to digital video game stores became less aspirational and more depressing. Although I am sure people have always tried to pawn off their roach infested PlayStation.
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I'm not sure which is more surprising - that GME still does $3.6b+ in business per year, or that EBAY only does ~$11b+ in business per year. I thought those two would have been miles further apart.
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Of course-- just like almost every other situation. If I walk up to you and offer you $10,000 for your car, you can also ignore it.
And even if it wasn't unsolicited. If you have a "for sale" sign on your car, you are free to ignore any offers I make for whatever reasons you'd like.
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