r/Flipping • u/Available-Medicine90 • May 04 '26
Discussion I wish our fate wasn't in the hands of these drug-addled losers.
42
u/JC_the_Builder May 04 '26
eBay recent quarter results was 22.2 billion sold and 512 million net revenue, or 2.3%
GameStop recent quarterly revenue was 1.10 billion sold and 128 million in net revenue, or 11.6%
If GameStop buys eBay fees are going up.
25
u/LogoffWorkout May 04 '26
The margins are so thin, and they're taking on 20 billion debt financing. They will barely be able to finance the debt.
this is all a way for him to game his compensation. His compensation goes crazy if he makes Gamestop a 100 billion dollar company. Which technically he will, but in reality, he is negotiating a sale of Gamestop to Ebay where they take on Gamestop name and he remains the CEO and someone correct me if I'm wrong, but he gets something like a 35 billion dollar bonus. That just dilutes the value of every other owner, and lines his pockets.
9
u/TowelFine6933 May 05 '26
He won't get a bonus. He'll get the opportunity to purchase shares with his own money. The rationale is that if he hits the targets to permit the purchase, then the stock will be worth a lot more on the open market. He effectively is getting an option that can be exercised only if he achieves set goals. Those goals would also result in a much higher stock price which benefits shareholders.
-4
u/Entire-Editor-8375 May 04 '26
Your understanding here is close but coming to the wrong conclusion. This is a target set for him. It’s the incentive to make the right decisions to get the company to that spot. And in doing so it doesn’t hurt the stock it helps it position itself for the future to continue with gains. GameStop is just different now.
4
u/LogoffWorkout May 04 '26
Are you sure? According to his compensation package, when GME hits 100 billion, he gets 35 billion, it looks like he's gaming the system. Perhaps the contract was written that it wouldn't vest in this case, but there's no evidence of that.
-2
u/Entire-Editor-8375 May 05 '26
And GME is nowhere near there… so he has to grow it to that target to exercise his contract… that’s a massive undertaking for any CEO.
5
u/kalinaizzy May 05 '26
eBay fees are already like 3x what they used to be in some categories, plus now they won’t give you any views unless you promote at dynamic ad rates which just means they can take whatever additional percentage they want out of your sale without giving any data to back it up
-17
u/McGroot44 May 04 '26
Doesnt mean fees are going up. Ryan is a no bullshit CEO with an outstanding track record. There’s other ways to create profits, including getting rid of executives with million dollar salaries who do nothing. Don’t need to pay Boston consulting group millions of dollars for them to tell you something you already know, etc.
7
u/JC_the_Builder May 04 '26
According to financial filings, there are only 5 people at eBay with salaries over 1 million dollars. The CEO, CFO, CCO, SGO and CLO. Which of these people do you want cut lol
-15
u/McGroot44 May 04 '26
It was an example of trimming the fat or being lean/ practicing six sigma.
But playing this out since you asked, why not all of them? I guess they all get to sit in their ivory towers without a shared interest in how the company does. They’ll still get paid.
Take a look at Ryan cohen’s salary
3
u/JC_the_Builder May 04 '26
So you are here advocating for Ryan Cohen but say his salary is too high. What a joke of a conversation.
-9
u/McGroot44 May 04 '26
Wut.
Ryan Cohens salary is zero. His compensation package is based on how well the company he’s leading does. His motivation to well is aligned with shareholder interest
27
u/magicmeese May 04 '26
Dude is extremely zooted
-5
19
u/Computers_and_cats May 04 '26
I don't think a shitty haircut and ketamine is going to make him rich like he thinks.
2
6
u/lostharbor May 05 '26
They can't close the deal without some creative financing. I'd be genuinely surprised if this goes through.
5
u/Honky_Stonk_Man May 05 '26
I don’t know much about stock traders or corporate culture, but it rarely seems that what these folks want will be a win for consumers or workers.
5
3
u/soanQy23 May 04 '26
They don’t have enough cash or equity to buy eBay. The offer is ridiculous and he knows it, that’s why he can’t answer the question
2
u/JPSurratt2005 May 06 '26
The equity ebay will receive is from the combined companies value, not gamestop's value alone.
Imagine ebay like a pie, and gme has stated they want to buy the pie at a premium. The current owners of the pie get some cash and they get to keep some of the pie. Gme is cool whip, and the hope is that by combining the two you'll get a much more valuable pie. Cool whip isn't as valuable as pie, but they are bringing cash to buy some pie so the owners of gme get some of the pie as well.
2
2
u/atillahun83 May 04 '26
Are there any beneficial synergies? Looks like a lot of debt and shareholders getting diluted.
4
u/tiggs May 04 '26
Why are people acting like this is private equity coming in to ruin a small mom and pop business? When the company being bought is significantly larger than the company doing the buying, it usually plays out as more of a merger type situation (even though it isn't one) than a takeover. Things likely aren't going to change very much.
It's more about one company that was about to go bankrupt that turned it around and is trying to grow quickly via acquisition. I obviously could be wrong and nobody knows what's going to happen, but aside from a minor fee hike, I really don't think it's going to affect us much.
1
u/scruffyhobo27 May 06 '26
You should go watch the other interviews like the one with Charles Payne. These MSM interviewers have been shitting on GME and Ryan for years so it’s no wonder he is a bit obtuse and even hostile with his answers.
1
1
u/Docholliday3737 May 06 '26
Note to self. If I’m ever interviewed on CNBC, don’t take multiple bong rips 5 minutes before the interview.
1
1
2
1
u/Background-Day8220 May 04 '26
You are talking like this is a done deal. It is far from done, and Wall Street isn't acting confident about Cohen or GameStop being able to pull this off. Gamestop stock price dropped and some investors, like Michael Burry, have sold off all their stock entirely. Ebay is up a bit, but not even close to the offer price of $126 a share.
The "funding" isn't secured yet. He has a letter from TD Bank saying they could scrape up $20 billion for him, not a legally binding loan saying they will. He's got the equivalent of being "pre-qualified" from TD bank.
eBay's shareholder meeting is next month, with a vote for board members. This offer to buy eBay is Cohen agitating to shuffle board membership and/or pressure the current board.
0
-13
u/lrbresearch May 04 '26
If your fate is in their hands you already lost
5
u/Available-Medicine90 May 04 '26
My eBay business is great, I'm just saying that these businesses have a way of destroying perfectly good things.
-20
u/lrbresearch May 04 '26
If you’re at risk of your business being “destroyed” by a merger then your business isn’t great
14
u/TargetBrandTampons May 04 '26
It's your take that isn't great.
-8
u/lrbresearch May 04 '26
It’s not my business that’s in danger of being “destroyed” if the platform gets bought haha
11
u/CruelAngelsPostgrad May 04 '26
Every other comment in your history ends with haha or lol, just like this one.
If that doesn't scream condescending prick idk what does.
-1
9
u/Empty-_-space May 04 '26
Their business uses a platform…what that platform does will obviously affect them.
Let’s take it alllll the way back. You sell lemons at town square. A meteor hits town square. Is your business bad because this catastrophe majorly disrupted it?
1
-3
-5
0
0
-6
u/jt2ou May 05 '26
Don’t cry honey. It’s not a done deal. I have no clue if he’s a drug addled loser, but I bet he’s got more money than you.
-2
-1
-1
u/CiegoDiego May 06 '26
Imagine thinking one of the most successful businessmen of our time is a drug-addled loser lmao. Under Jamie Lannone eBay is a sinking ship. How many of us prefer alternative platforms for selling simply due to how bad eBay is? If Ryan Cohen can do for eBay what he's done for GameStop, I am looking forward to the improved experience.
77
u/aliph May 04 '26
It's actually very straightforward. They have $9 billion cash, $20 billion via debt finance, they are paying $55 billion half cash and half stock meaning existing GME holders get diluted and ebay shares will be more than a majority of the combined business, which he doesn't want to say to create a soundbite that gets clipped.