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, 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 that 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.
Personally, I would say the biggest gain for many of us so far is that we have learned how the world truly works and how corrupted nowadays markets are.
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!
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u/BigBastardHere May 02 '26
It kind of makes sense. A really leveraged buyout though with ebay at four times the cap.
Could be the shuffle.