Wall Street Journal reports that the money-losing GameStop retail chain, better known of late as a meme stock, has made an offer of $56 billion to acquire eBay. GameStop also disclosed it had acquired a 5% stake in the pioneering online marketplace. The combined company would leverage GameStop's retail network to facilitate certain online transactions, amid a sharp decline in sales at GameStop's stores over the past few years.
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GameStop makes offer to buy online marketplace EBay
- Thread starter PTBoardOp93
- Start date
That's an interesting sentence. They would leverage their retail network, which has seen a sharp decline in sales.
No surprise. I went to my local GameStop once looking for baseball collectables. I found a better selection at Dicks Sporting Goods.
eBay stock went up 12% in after hours trading. Personally I prefer eBay to Amazon. Obviously Amazon is the bigger success.
Amazon uses its Whole Foods stores to facilitate online transactions. From my experience, it's not a big factor in what they do.
The 56B offer is pretty good, considering the market cap is 46B. Meanwhile the Gamestop market cap is under 12B. So where is the money coming from?
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Sounds like you struck out at GameStop!
All those wise guys who cashed in big a few years back during GameStop's 15 minutes of fame as a meme stock?
eBay has rejected the big from GameStop:
www.nbcnews.com
Probably because there's no actual money behind the offer.
Online seller eBay rejects GameStop’s $56 billion takeover offer
In a letter from eBay Chairman Paul Pressler, eBay’s board said that it had completed its review of GameStop’s offer and believes that eBay is a “strong, resilient business.”
www.nbcnews.com
Probably because there's no actual money behind the offer.
Incoming irony detected. When GameStop finally implodes, the chapter 7 boys can sell it on eBay.
My take's a little different. This looks like GameStop is making a bid for eBay to acquire them. It wouldn't be the first time that a smaller fish makes a run at a bigger one, and the result is the bigger fish swallowing them. The shareholders come out ahead, as does the smaller fish's top management. (They usual get their walking papers along with their golden parachute, but by then they no longer care.) Customers get absorbed into the eBay platform. And eBay management gets rid of a pest, and maybe figures out a way to profit from the acquisition. (Of course, there has to be something to monetize or the institutional shareholders quickly lose their patience.) We shall see...