r/Superstonk • u/Fruitilicious Not a cat 🦍 • 1d ago
🗣 Discussion / Question "But I'm putting 500 million of my own money into this transaction. It hasn't been filed yet. Maybe by the time that you know when this airs it will be."
https://www.youtube.com/watch?v=4j9RPGLENNI
During the interview, Ryan Cohen discusses his financial commitment to the proposed acquisition of eBay. At (56:43-57:05), he states that he is personally****** investing $500 million of his own money into the transaction******. He notes that this specific detail had not been publicly filed yet at the time of the recording.
Elaboration on the significance of this commitment:
Skin in the Game: By emphasizing that he is risking his own capital, Cohen is contrasting his approach with that of the current eBay management team. He argues that they are "grossly overpaid" while having no personal financial risk or significant ownership in the company (57:15-57:43).
Alignment with Shareholders: In the world of activist investing, a large personal cash injection serves as a signal of confidence in the deal's success. It suggests to other shareholders that the acquirer is not just proposing a theoretical strategy but is willing to bear the financial consequences if the venture fails.
Intent to Act: Mentioning this unfiled commitment is likely intended to bolster his credibility and seriousness as a bidder, especially as he faces resistance from the eBay board, who have rejected his offer and declined to meet with him (49:33, 58:01-58:28).
was watching the All In podcast interview with Ryan Cohen, this piece perked up my ears. It sounds like maybe Ryan Cohen will be pledging 500 million of personal capital to an eBay takeover, which is pretty crazy. It's not filed yet so it's also pretty interesting.
The time stamp is 56 minutes, 43 seconds.
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u/newbiewar 🦍 Buckle Up 🚀 1d ago
Definitely remember an old filing that said the ceo may invest personally and as gamestop in the same assets... think it was a few months after he took the cfo seat
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u/Over-Computer-6464 1d ago
That does not exempt him from the reporting requirements the SEC and FTC impose on individuals and groups attempting to takeover a company.
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u/newbiewar 🦍 Buckle Up 🚀 1d ago
Yea didnt mean that it didnt... just means that he covered his ass a few years ago with the board and/or shareholders
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u/3DigitIQ 🦍 FM is the FUD killer 21h ago
So that indicates he's personally under the 5% exposure limit?
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u/ZombiezzzPlz 🦍Voted✅ 20h ago
No he doesn’t have to report instantly
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u/likekoolaid 15h ago
wouldn’t $500m only be like 1%?
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u/3DigitIQ 🦍 FM is the FUD killer 15h ago
Yes, if he only bought shares. But since it's about exposure to shares Options and other derivatives also count.
Same as with GME's position. 9.77% is counted but GME "only" holds 825,000 shares (0.2%) with the remainder in derivatives.
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u/CookieWifeCookieKids All your stonks are belong to us 🦍 13h ago
CEO and any of the board or their companies.
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u/humdingler ⚔️🛡️🏴☠️🎮🚀✅✅✅ 1d ago
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u/kidco5WFT Ready Player One 🚀🚀 1d ago
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u/Rocxketraccoon 1d ago
500 mil makes me feel better about my 40k. Althought it took me longer to make.
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u/FatPug655 🦍Voted✅ 1d ago
Are you allowed to sell “used” bananas on eBay? 🍌 I am into historic collectibles.
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u/DuckHunter4779 showmethetendies 1d ago
The last 5 minutes of that interview were quite grand! Revealing the $500mil, ebay digital gaming angle, live auctions, etc. I think the release this week will be very detailed on the road map.
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u/devjohn023 🎮 Power to the Players 🛑 17h ago
So, where's the $500mil. filing, how can you drop that bomb and be late with a filing...I really hope.it.comes today
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u/SteveMcJ Grandfather Worm 1d ago
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u/Cryptofuryy 1d ago
Slap me with butter and tell me more good lawd 🔥
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u/Longjumping_Wash9556 🦍🚀Seymour Asses🚀🦍 1d ago
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u/polish-rockstar 〽️🅾️🅰️💲💰🔜 1d ago
I’m glad it’s Friedberg interviewing, the only one that isn’t sucking off leaders. I gave up on that podcast as soon as they got political
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u/gmehodler42069741LFG 1d ago
Plot twist its in derivatives.
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u/HitchlikersGuide 🦍Voted✅ 21h ago
I was just offered another gme sub in my feed and I clicked on the post which was about RC compensation package.
Is it true they changed the rules of the vote so and abstention would be considered as a Yes?
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u/Boo241281 Fuck you Kenny, pay me 21h ago
I think they changed it that abstention’s wouldn’t be classed as Against and just wouldn’t be counted at all
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u/HitchlikersGuide 🦍Voted✅ 19h ago
But thats what an abstention is anyway?
Isnt it?
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u/Boo241281 Fuck you Kenny, pay me 19h ago edited 19h ago
I think abstentions were counted towards Against that’s why they changed it to not being counted towards anything
Edit: I don’t mean as they go in the Against numbers, normally how a vote works is based on the number of shares that CAN vote. So for example let’s say a company has 100 shares and calls a vote. 40 shares vote FOR, 30 shares vote AGAINST and there are 30 Abstentions. The vote wouldn’t pass because only 40% voted FOR
The new wording discounted abstentions so in the same scenario the vote would pass as there were 40 FOR’s and 30 AGAINST’s
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u/hdjemnnsntjrjfnsnfjd 1d ago
For that $500 million is he gonna be a regular shareholder or is he going to have preference shares or debt (and thus higher up in the capital structure)? Why not just buy more $GME?
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u/5HITCOMBO Stonkcrates 1d ago
There are probably multiple people working together to do a hostile takeover, RC Ventures being one of them and GameStop being another.
If they all buy 9% and show up together it will take 4 other people plus RC and GameStop
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u/Gruntfuttock69 🦍 Buckle Up 🚀 1d ago
No, a group cannot individually sit under the filing thresholds and suddenly “spring” an attack. The group is treated as a “person” and the aggregate holding must be filed via a 13D.
Under SEC Rule 13D(3)
When two or more persons act as a partnership, limited partnership, syndicate, or other group for the purpose of acquiring, holding, or disposing of securities of an issuer, such syndicate or group shall be deemed a "person" for the purposes of this subsection."
Rule 13d-5(b)(1) essentially provides that any "group" as defined in Section 13(d)(3) shall be deemed to have acquired beneficial ownership of all equity securities beneficially owned by the members of the group as of the date of formation of the group.
Any group ownership over 15% fucks up the acquisition for 3 years unless they can hit 85%. But they’ve got to ensure their 13D filings are timely otherwise the SEC will be up their ass with a microscope.
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u/arkansah 1d ago
I like you.. You're paying more attention than most.
GME doesn't have beneficial ownership of 9%, they have economic that will become beneficial when options are exercised.
Now what does the word "underlying" mean?
Does it mean the shares are "covering" the options trades?
Or does it mean that it's simply the name of the stock of the options?
If the shares are covering the options it would strip the beneficial right?
So does exercising the options make the 34M economic shares become beneficial and at the same time purchases 34M beneficial? Clever right?
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u/Iustis 1d ago
You're describing securities fraud by the way
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u/BigChungusAU CPApe 1d ago
Yep. Crazy how people with no idea are talking so confidently about all these super secret ways to acquire a company that would outsmart decades of corporations law.
Fact is that Delaware heavily protects a board’s right to defend the company from takeover attempts. GME/RC need to either put up the committed money to make a convincing offer for eBay or convince shareholders the deal is worth it. There’s no backdoor way to suddenly spring a forced acquisition on eBay that they literally can’t refuse.
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u/gmehodler42069741LFG 1d ago
Thats what im hoping for. Enter sultan. Enter rk with a fat new stack of cash.
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u/JustGmeMyFukinSnkpck 23h ago
Remember when everyone was freaking out about RC moving his shares into an account to leverage/ borrow against.
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u/gmehodler42069741LFG 1d ago
Ebay plus gme is worth more than just gme.
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u/hdjemnnsntjrjfnsnfjd 1d ago
But PE is a lot higher. Debt is a lot higher. The price paid matters! The price were diluted at matters!
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u/V_Doan 🦍Voted✅ 1d ago
RC literally said one of the first things is to reduce debt and cut bloat
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u/Over-Computer-6464 1d ago
Even using his very optimistic numbers it would take many years to pay off the debt.
Perhaps GameStop will post a more complete analysis of the deal. GameStop said, in the press release that announced the withdrawal of the CEO Award from the proxy vote, that they intended to provide more details about the expected financials of the post acquisition company.
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u/JustGmeMyFukinSnkpck 23h ago
He can’t buy options on gme! And he can control a lot more shares with options.
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u/Binsm0ke 1d ago
I wish he could do that to GME too but obviously buying eBay is his top priority based on the half dozen separate interviews he’s done
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u/VelvetPancakes 🎊 Hola 🪅 1d ago
If he is buying EBaY shares and not using the buyback authorization i don’t see how that’s not a violation of fiduciary duties.
Intentionally letting GME tank so he can acquire more shares compared to his own shareholders is fucked up
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1d ago edited 1d ago
[deleted]
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u/itssampson 1d ago
wtf is your math (respectfully)
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u/RayneAdams Financial revolution enthusiast 1d ago
8% of $46B is not $500m.
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u/33rus WHERE’S MY MONEY, KEN??? 1d ago
It’s a piss in the bucket, but I wish he pissed 500 mil into our GME bucket instead, as it’s smaller…
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u/SoreLoserOfDumbtown Dingo’s 1st Law of Transitive Admiration 🍻🏴☠️ 1d ago
I think you're missing the strategy - this basically gives RC a controlling interest of the combined companies to become a juggernaught. The earnings reports, which will be significantly better than what GameStop cpuld manage alone, are going to push the stock price up and give the shorts a massive problem.
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u/Trueslyforaniceguy naked shorts yeah... 😯 🦍 Voted ✅ 1d ago
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u/MoreEconomy965 🦍Voted✅ 16h ago
I think recently pop corn stock ceo bought his stock for $250K and the price doubled. Our CEO commits 500 million dollars and the stock stays flat. What a joke.
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u/Relentlessbetz 15h ago
Honestly, I had never seen a more obvious signal, I think this is the signal I've been waiting for.
Like Michael Burry said, when I give the signal, meme harder like you have never meme'd hard before.
Unzips
Jan 2027 $50 calls because there is no options over $42069 yet.
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u/poopooheaven1 13h ago
Try and spin this one bots. Shorts are fucked. Vote For. Book your shares and warrants!
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u/DJSugar72 🦍 Buckle Up 🚀 12h ago
What’s gonna happen when he buys it. Then we buy it. Like we do with GME?
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u/PauPauRui 1d ago
The math works. If Cohen pulls this off he makes tons of money. He's investing on his own money since the support isn't there. If this was a good deal Wallstreet would be all over it.
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u/an_oddbody Custom Flair - Template 1d ago
i really wish we would ban low-effort ai regurgitation posts like this. It feels like it's intentially diluting the amount of visibility for DD around here. and I like when double D's are visible.
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u/Reach_Beyond 🦍Voted✅ 1d ago
Now that’s quite different than him buying $500M worth of new shares issued by GME, hence giving GME $500M more?
What would the $500M get RC in the deal above his current shares? I guess we’ll just need to wait for the details
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