alt Hacker NewsWell if you’ve seen the CNBC interview with the GameStop CEO he couldn’t answer basic questions about the deal so the outcome here isn’t surprising.
The interview was so bad the first time I saw it I thought it was some sort of satire bit. No, it was real and the commentators were literally speechless.
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Tbh, if you can convince someone to take your relatively worthless pieces of paper in exchange for your valuable asset, then your worthless pieces of paper are no longer worthless.
Not much different than me having a bit of cash and putting 5% or 20% down to buy a home or car: now I’m a big asset and debt holder and you got some pieces of paper with dead presidents on it.
That was the hard part of the deal: will (enough) eBay shareholders want to be GameStop shareholders.
eBay shareholders would be right to be upset with eBay management. eBay has treaded water in a niche of online shopping while online shopping has grown massively. Whether GameStop is their solution or not, Iunno.
Patrick Boyle on Finance has a Youtube video on the topic (https://www.youtube.com/watch?v=iBlu45HFruk). He basically explained that they simply can't afford the proposed transaction, so it was never going to actually happen.
He didn't want to say the "D" word.
(Dilute the religious share holders to have them finance the deal)
It was a clown-show interview, but also likely on purpose from the CEO. The CEO does not like CNBC (their history of reporting on GME as a meme stock), and his schtick plays to retail investors. The problem is to get a deal like this done he needs to convince non-retail investors to come along. He also clearly didn't want to say 'dilution' when pressed about where the rest of the stock would come from.
CNBC hard fumbled in that they didn't even understand what the offer was. The CEO put that on full display and embarrassed the hosts basic knowledge of finance. It was hard to watch.
Just saw this for the first time. How someone can show up on a major network like this is beyond my understanding. Literally couldn't answer where the money would come from.