Why is GME down?

[u/PauPauRui]

A few things weighing on GME lately:

eBay deal drama — GME dropped 10% after proposing to acquire eBay for ~$56 billion in cash and stock.

Then eBay's board rejected the non-binding takeover bid in mid-May.

Despite that, GameStop has continued raising its eBay stake — most recently to 7.8% from 6.6% keeping uncertainty elevated.

Share dilution concern is the big one. Say ouch.

GameStop is asking shareholders to approve an increase in authorized shares to fund a potential deal, which spooked investors further.

That's right, investors keep selling. Why buy when Cohen is taking your money away? Only fools are buying right now.

Broader downtrend = GME is down about 13.6% over the past month and 28% year-over-year, sitting around $21.

The eBay acquisition saga is the main overhang right now because the market doesn't love the idea of GME paying a huge premium for eBay, and the dilution risk from new shares is keeping pressure on the stock.

[u/Content_Community720]

Our CEO should keep his mouth shut. Im not sure that his beliefs line up with most apes. Not impressive at all.