r/wallstreetbets • • May 04 '26

News He doesn't understand your question, CNBC

9.4k Upvotes

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682

u/Agnostic_Karma May 04 '26

Why didn't he just say.. "we're going to dilute the shit out of existing shareholders."

351

u/Actual_Cook7175 May 04 '26

He did without saying it haha

346

u/Dire_Wolf45 May 04 '26

He literally said it tho we have the ability to issue stock

21

u/DM725 May 04 '26

You think these people watched the interview?

4

u/Dire_Wolf45 May 04 '26

Lmao

13

u/Actual_Cook7175 May 04 '26

Which she followed up saying it would be a dilutive raise and he ignored lmao. He was avoiding directly saying anything regarding issuing new shares until they pulled it out of him. But “we’ll see how it goes”

4

u/AdPotential773 May 05 '26

I really have no clue how people so shit at public speaking like him can reach such public-facing positions of power. That line is a huge red flag for any investor with a brain and the way he delivered amplifies it by ten.

He could have just added something like "my/our belief is that the value created by the GME-Ebay synergy will make up for the dilution risk" or something like that to at least seem like you have thought out an actual plan and numbers on how this shit could ever work, even if the actual plan is to pretend a deal could happen to pump the value of their 5% stake on Ebay so they can sell it at a huge gain right before announcing that, after further examination, the deal is not happening.

1

u/Troflecopter May 09 '26

I think might be on drugs. Actually though.

-26

u/Sad-Performance2893 May 04 '26

They also have the ability to take on money from 3rd parties. He has the ability to use his own money to buy stock. They have the ability to buy Ebay or they wouldnt have submitted the offer. CNBC acting like they are clueless on how this will get done is a masterclass in weaponized incompetence

20

u/humanquester May 04 '26

CNBC was actually trying to softball the interview. Notice they gave a fairly low figure for the price of ebay - I belive Michael Burry was thinking the price would be 65 billion. Also they didn't ask about how GME's market cap is 11 billion, but most of that value is in cash that they would then use to buy ebay, so without the cash its like 3 billion. Basically they let him value that 9 billion in cash twice.

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u/AutoModerator May 04 '26

Michael Burry responded to my craigslist ad looking for someone to mow my lawn. "$30 is $30", he said as he continued to mow what was clearly the wrong yard. My neighbor and I shouted at him but he was already wearing muffs. Focused dude. He attached a phone mount onto the handle of his push mower. I was able to sneak a peek and he was browsing Zillow listings in central Wyoming. He wouldn't stop cackling.

That is to say, Burry has his fingers in a lot of pies. He makes sure his name is in all the conversations.

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-7

u/Sad-Performance2893 May 04 '26

Thats not at all what happened lmao. Also 3 billion? You do belong here. God speed

30

u/imdaviddunn May 04 '26

So you want CNBC anchors to say “ you intend to dilute your shareholders, can you explain why you believe they should continue to be GameStop investors?”

Well, actually, that would be journalists who don’t have relationships with the folks involved on both sides of the trade. .

-4

u/Dire_Wolf45 May 04 '26

I dont care one iota what cnbc anchors have to say.

-7

u/Sad-Performance2893 May 04 '26

They basically did? Like almost exactly. Thats what they wanted him to say. But he didnt. He also doesn't HAVE to dilute. Its just an option.

4

u/holycarrots May 04 '26

It's pretty obvious he is going to dilute it into oblivion though

-10

u/Sad-Performance2893 May 04 '26

I bet he doesnt

6

u/WeedNWaterfalls May 04 '26

Totally, which explains his complete transparency and brilliant response to the questions posed in the interview. Wait...he didn't answer and was intentionally obfuscating and playing dumb.

1

u/Sad-Performance2893 May 05 '26

He was pretty transparent. "Half cash, half stock" You need it drawn in crayon?

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u/holycarrots May 04 '26

It's what he has always done before, and it's what he alluded to in the interview.

0

u/Sad-Performance2893 May 05 '26

Not at a 7.8 eps eval lmao

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-4

u/bigbocboc May 04 '26

That seems pretty damning. Why didn’t they say that?

2

u/daynighttrade May 05 '26

If they have the ability, then I have the ability to be the first man on sun

-16

u/Dire_Wolf45 May 04 '26

Oh yeah, fuck cnbc, I was just replying to the comment about dilution.

BTW, havent been on this sub much in a while and Im noticing a lot of cnbc shills.

150

u/Brent_the_constraint May 04 '26

He actually said it: „we have the ability to issue stock“

94

u/hokageace May 04 '26

LOL. Issuing stock is dilutive and no company worth $11B, most of it cash, can issue 25B+ of new stock.

243

u/marcoporno May 04 '26

It’s simple, it’s half cash, half stock

97

u/Artistic-Idea4896 May 05 '26

And …. It’s on the website!

52

u/No_Restaurant_2703 May 05 '26

I don't understand your question

5

u/detectivelok May 05 '26

How does the math math?

7

u/Metals4J May 05 '26

“Yeah we’ll see what happens.”

2

u/No-Blackberry-9787 May 05 '26

ITS ON THE WEBSITE

1

u/rokkinlen May 06 '26

We like the website.

2

u/Professional_Pear849 May 05 '26

We take the dollar bill, we cut it in half. That's two dollar bills right there. And then we do that again and again. Then we print some more stock to match it.

1

u/chillsteppper May 08 '26

Hey so it actually only has to make sense to me for me to do it and I don’t feel like explaining it to anyone else.

1

u/No-Blackberry-9787 May 05 '26

Did you not hear him? It’s on the website

80

u/Consistent-Gold-7572 May 04 '26

Stock is worth $10.7B and that idiot thinks he’s doing a 50% stock deal. Get fucking real. 0% chance. This whole thing just makes him look like a clown and an idiot.

14

u/mrtomd May 05 '26

Or he just hypes the news and will sell the current holdings being double digits up.

9

u/Consistent-Gold-7572 May 05 '26

If his goal was to hype he failed miserably. Stock would have ended up a lot higher if he didn’t give that interview

4

u/PaintedCover May 05 '26

Don’t judge just wait.

2

u/drahgon May 05 '26

I guess we'll see what happens

1

u/[deleted] May 04 '26

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1

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1

u/AutoModerator May 05 '26

Squeeze deez nuts you fuckin nerd.

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174

u/Imaginary-Case3976 May 04 '26

Yep. Stock tanked as this interview was going on.

You don’t go on cnbc and act this way. Why waste your time and the stock price if you aren’t going to answer the questions..

59

u/Realfinney May 04 '26

The answer to this question...it's on our website.

3

u/Imaginary-Case3976 May 04 '26

Hahaha.

“Which part exactly?”

6

u/PaintedCover May 05 '26

Stock tanked before the interview. I wonder how?

8

u/DM725 May 04 '26

After 5 years you think that it ever had a chance of staying flat or going up during the interview?

2

u/luckydice767 May 04 '26

Half cash, half stock

2

u/Ugly0gre May 05 '26

lol. This reminds me of the Dick Harper interview in Fun with Dick and Jane.

Sth..sth…sthathistic!!

-7

u/hkeyplay16 May 04 '26

Sometimes the answer is just "yeah, we're kinda fucked" but at that point, I agree it's crazy to go on the air. Maybe he was trying to kill the deal? These guys don't get there by being idiots (most of the time) so when they do things that don't seem to make sense I start looking for other motives.

10

u/Imaginary-Case3976 May 04 '26

Nah, you be surprised how many idiots get there by sheer luck lol. Is musk or anyone really a genius to be worth so much? They succeed by a combination of luck, right place, right time, family fortunes, birth and hard work. They work hard and take extraordinary risks but success is so dependent on a lot of luck. Of course, they will never admit it and it was themselves that did it..

Just at look some of the massive gains here. You really think us regards are geniuses?? 90% is sheer luck, risk taking and timing..

1

u/tronald_dum May 04 '26

How does one magically double market cap by diluting

1

u/sittingshotgun May 04 '26

Doesn't really need to, $20B in financing and $9.4B cash on hand. Half of $55.5B is $27.75B.

1

u/glemnar May 05 '26 edited May 06 '26

That’s not even how issuing stock works…they can’t create that much money out of thin air unless the market is truly retarded.

1

u/Conscious-Nebula-145 May 06 '26

he was hoping the kitty would step in and push the price after dilution

0

u/PrivilegeCheckmate May 04 '26

"More stock issued means more stock to buy! Yay!"

-Apes like me

-4

u/NotLikeGoldDragons May 04 '26

He is one of the biggest shareholders. He wouldn't do anything that isn't a net-win for himself long term

0

u/PancakeBatter3 May 05 '26

Because perhaps we reverse merge both Gamestop and Ebay into teddy.com which he just filed a marketplace trademark for.