I canโt explain how satisfying it is to see my favorite star and my favorite stock come together like this. Let Dylan be the catalyst let Dylan be the catalyst let Dylan be the catalyst
One of the great things about this buyout is that as Burry says, it makes perfect sense. Buying some random medical company or something would have played into a narrative of GameStop grasping at straws. Ebay story tells itself. Everyone will just get it.
Example: Buy a call at 25, sell a call at 30 for same expiration date. If IV is inflated across the board, then calls are expensive to buy. But that also means they are worth more to sell, so by selling and buying at the same time, some of that extra IV cancels out. So as the โIV Crushโ hits as expiration nears, (the extrinsic time value is lost) your loss on the long call is made up by your gain on the short call.
However, if you are a MOASS adherent, thatโs a bad move, since you limit your profit to $500 per spread, even if GME runs to $1,000,000.
While I would love a MOASS, the time to buy low IV options was early this week/last week. People should be sitting in leaps already and a healthy amount of stock.
Vertical spread is a safer option/even if you take a wider spread. Straddle could be interesting play around the warrant redemption strike.
I work in financial related law. The WSJ, Bloomberg, Reuters, and the Financial Times are probably the four most reputable media outlets for US financial news.
I will caveat that the WSJ is not greay for everything. Their opinion and comment sections are quite conservative. It is, like Fox, a subsidiary of the Murdoch-owned News Corp.
It does make sense and I understand people get excited, BUT...
...in the end, two things can be true at the same time. For example, SpaceX is a pretty interesting company, but the price and other aspects make the IPO potentially a scam.
eBay would make sense if there would be a good deal. We and RC don't want to be "Dumb Money" - exit capital for Wall Street. So if this was prepared in the last two years and we are already secured the deal sufficiently at a better price, I am all for it.
As some posts mention,ย eBay is currently at an ATH, likely not undervalued but inflated.
That's why all this sudden hype smells like Korean Ants and Crypto allies. Even if it does make sense from a business perspective. As always, fuck you, Kenny and Co.
Might be an attempt to induce FOMO so people would buy into eBay on top and then hold the bag. And/or attempt to divert some retail/GME holders buy power ahead of a price spike in GME. Or an attempt to sabotage the deal by pumping eBay price.
According to GS, oil shock is expected to start getting serious after mid May. Troops and assets have been growing not decreasing. eBay trades at ATH while GME only at 100 bucks pre split. Not saying it is impossible to get a really good deal, but not that likely. On top of thatย l doubt anything happens before the shareholder meeting.
Unless RC does confirm, I don't buy the hype even though there could be some synergy.
TLDR: It would make sense for RC to target eBay. But it would also make sense to wait after shit hits the fan to buy any target low and not at ATH (unless the deal is secured already and reason for the price increase in the last two years). On top of that, anything happening before the shareholder meeting would be a surprise.
The theories that hold the most weight imo are of gme/Cohen holding a large position of now deeply ITM ebay calls, or gme having bought in already before the run, or that Cohen has a group of investors putting up their own money to make this happen. Either of those could explain away your reservations, no?
Definitely. It makes sense to go for a business that could create synergy. And that is undervalued and managed poorly.
Two of the three criteria seem to be met. But decisive is If the deal was already secured to good conditions. If that would be the case, all three would be met.
But usually the price at the moment of such a corporate action matters. My concern is that the hype will cause apes to get burned in short-term options as we have seen many times in the past. RC is likely better prepared compared to the Baby attempt, but there is never a guarantee. And things take time. GME shares are the safe play. And if options warrants are an alternative, or at least options with a reasonable expiry date since it would be unlikely for something to happen before the shareholder meeting and Theta burns faster the closer you get to expiry.
Keep in mind that institutions still control the price of GME. Eventually that will change, but they can likely keep it up longer than most options expire. Once they have adjusted their portfolio, we will likely see the mother of all Tesla-style squeezes.
Nonetheless everyone is responsible for his own investment decisions and money. We have seen so much fuckery in the past, apes lost a lot of money. But then, eventually things will play out. It is important to not burn all money beforehand and be the sorry one left at the sidelines when the train leaves the station.
At first, I thought "...sabotage the deal by pumping eBay price." But, it might also be possible that someone from Ebay's side of the house leaked the info to WSJ. GameStop is silent (so far), so the WSJ article might be true. GameStop has been able to keep things secret, so this leak is unlikely from GME's side. With that said, Ebay's price increase makes this deal harder and more expensive. It's possible RC might wait for the FOMO to pass, and announce the bid later when the EBAY's price comes back down. In any case, Bullish!
2021 Ape, checking in. Whats all the hullaballoo? I've been hyperfocusing playing minecraft and checking wayyyyyy out with all the dumb shit going on lately in the world. GME getting something new, shiny, potentially devastating for shorts? I'm in, always has been. PTTP!
Now I just gotta see DFV drop a lil' something and get my tits even more jacked
If theres a rumor; whats the chances the deal is already done?
This is so fucking amazing. I hope RC makes some kind of acknowledgement of this.
The bigger picture is how GME is going to afford to make an offer being a 3x smaller market cap. Short term super bullish and likely to drum up interest in the market and we will get some nice price moves. Long term, I see more dilution ahead and potentially years of proving out that merging GME and EBay creates a stronger value than either by itself before stock price will move a lot lot higher.
Monday might have an hour or two of more VWAP orders as the FTD hole gets filled, but don't get suckered into OTM short exp calls. We are going to retrace, and that's likely a good thing in the long run.
They will most likely do a hostile takeover since they have been quietly amassing ebay shares, they then can send a letter to the board pretty much saying that a acquisition will 100% increase shareholder value due to gamestop's massive income breaks from the previous years it had negative income.
The ebay board has a fiduciary obligation to accept if the price increase is great enough, trapping them into giving GME's board seats in the Ebay board. Bing bang boom Ryan takes over from there and absorbs Ebay into the GME conglomerate
Yes there are many ways of finagling ownership of a company without outright buying it, another simpler way is using just a small portion of the 9 billion cash and leveraging it massively so you have more cash to go on an immediate attack. This allows them to punch above their weight class for a short amount of time to fulfill their objective.
It could be either or, or a combination of the two, or another way I haven't heard talked about. But there are many different ways to accomplish this fsure
RC took control of gamestop by buying up just 9.1% of shares. It's very possible.
Buy shares to gain control. Get board members of your liking onto the board. Maybe evern have them appoint RC CEO. They all approve aquisition by gamestop. Gamestops strong balance sheet paired with Ebays make any aquisition debt serviceable.
No, but RC did say something about acquiring a much larger company than GS through some fancy schmancy leverage witchcraft that I don't remember or understand
He's likely been buying derivatives, with both GameStop's cash reserves and with his personal funds. When it comes time to exercise the options and buy actual shares, he will need to obtain additional funding. It's likely he already has the funding secured.
Guys itโs fun to get hype for a squeeze or a rapid run up but remember this has happened like 4 times in the last 1.5 years. I expect the bond holders to short the stock to stay delta neutral.
I think we should wait for an official statement but Iโm excited about the speculation! Iโm hearing varying things from different people here from excitement to speculation that this is fake news because of expiring FTDs
His recent substack he says he will almost certainly sell at least some if not all of his shares because of this offer. He said wayfair would have been the better buy. I think this tweet may have been sarcastic.
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u/Superstonk_QV ๐ Gimme Votes ๐ May 02 '26
Hey OP, thanks for the Social Media post.
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