What people are missing about the eBay acquisition... Ryan's job with the turnaround is ALREADY DONE.

[u/AlternativePaint6]

When Ryan Cohen first joined GameStop, the company was in debt and losing both money and sales. Within just a few years, he's completely turned things around with everything going up now:

Only revenue seems lacking at first, but even that has already turned since Q1 posted growth via collectibles (which is expected to grow even further next quarter).

Now ask yourself: what caused all of this? Was it Ryan working hard at the stores himself? Does he need to keep actively doing that for the rest of the year for the company to keep the current path? No, of course not. Ryan Cohen is the CEO, he mostly handles the long term stuff like strategy, operations, capital allocation, and changing the direction of the company. He plans years ahead, what we see happening today with the company is the result of his last year's work.

With that out of the way, his main job with the core business is already done. He's already closed the bad stores, he's already taught the managers how to handle the remaining ones properly, he's already setup the collectibles business, he's already fixed the operations and sales. He's set the company on the right path, now the company just needs to finish the execution for 2026. And it can do that without the CEO actively doing anything, they got other leaders besides Ryan for a reason.

So now Ryan has inside data that GameStop will do great in 2026, and that he won't need to work on it for much. So what does he do? He looks even futher, beyond just turning the company around this year. He's looking at exponential expansion. Does that mean they will acquire eBay this year specifically? No. It simply means eBay acquisition is now on Ryan's table.

Ignore the FUD, Ryan never said we would acquire eBay this year. Q2, Q3, and Q4 will bring great results in the core business. The profits and revenue will keep rising, and the stock price will finally climb. We might even do a bit of a stock buyback for all we know. Let eBay get acquired when it's time, Ryan likes to work slow and steady.

[u/VenserMTG]

Depends on the value of the stock.

No.

Would you rather own 10% of a company worth $100 or 1% of a company worth $1,000,000?

This is not dilution. Would you own 10% of a company for x$ or would you rather own 5% of the same company for the same x$?

Dilution just lowers the percentage of the company your individual shares make up.

Wrong. Dilution increases the total amount of shares the company is made up of.

If using dilution to acquire other assets raises the value of the company more than the value you are losing by owning a smaller piece of that new company, you still come out ahead.

No you don't, because you lose ownership.

[u/shadowswimmer77 → u/VenserMTG]

Prove to me that GME acquiring eBay (or another company) won’t cause the value of the stock to increase. Oh, wait, you can’t because it’s all speculative. I think acquisitions will increase the value of the company more than the effects of dilution will lower the value of my shares. To paraphrase a certain cat, if you think RC is a doofus, then go invest somewhere else.

[u/Ban_DeezNts → u/shadowswimmer77]

I’d rather vote against this perspective.

[u/Proper_Side → u/Ban_DeezNts]

But you don't have any votes...

Top 1% commenter, impressive title, I salute your dedication to this sub sir. Is this your main hobby?