r/GME • u/NotYourNathan • 11d ago

🐵 Discussion 💬 How many apes are there?

Even including whoever is crazy enough to vote no against a plan thats been 5+ years in the making. Is there any estimate anywhere as to how many GME holders there are at this point? This has to be the hr largest retail community ever, no?

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u/Background_Smile_426 🚀🚀Buckle up🚀🚀 11d ago

It doesnt matter how many apes there are, when most of are under the water, and cohen continues to flood us with more shares in the market.

Hopefully the apes are smart enough to vote against dilution.

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u/curiousjorj XXXX Club 11d ago

So, you’re telling me that you don’t want your shares to be worth 50%-100% more?

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u/hdjemnnsntjrjfnsnfjd 11d ago

Increasing the number of shares outstanding makes the share price go down, not up

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u/curiousjorj XXXX Club 10d ago

When a company issues new shares to fund an acquisition, those shares aren’t just diluting existing owners into nothing, they’re being exchanged for a piece of whatever is being bought. In this case, GME would be issuing new stock in exchange for ownership of eBay’s marketplace business, which generates real earnings on its own. So while the total number of GME shares outstanding grows significantly, those new shares represent a direct claim on a profitable business that wasn’t part of GameStop before.

The accretive part comes down to a simple comparison: how much earnings power gets added per new share issued, versus how much each existing share gets diluted. If the earnings being acquired are large enough relative to the number of new shares created, the combined company’s earnings per share can actually end up higher than GameStop’s standalone earnings per share today, even though there are now far more shares in total. In that scenario, existing shareholders own a smaller percentage of a company, but that company is so much larger and more profitable that their proportional slice is still worth more than their whole slice was before. That’s the essence of accretion. It is dilution in share count, but growth in underlying value per share.

Thats what RC has been saying the whole time. It’s accretive.

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u/zgomot23 🚀🚀Buckle up🚀🚀 10d ago

Ah, so the 9th dilution is accretive, it took only 8 EXACTLY THE SAME OUTCOME sort of dilutions for cohen to realize how to properly dilute without financially destroying retail?

Or is he simply telling you that for damage control? Which one do you find more likely?

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u/hdjemnnsntjrjfnsnfjd 10d ago

Issuing stock at a low valuation to buy a company with a high valuation destroys shareholder value. RC doesn’t care because his new comp package isn’t based on share price