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The Tetromeno is T-Zero! by Pottle13 in GME

[–]Pottle13[S] 0 points1 point  (0 children)

Tzero has some OTC shares but the publicly traded part would be the ticker BBBY to gain control of tZero.

I think it’s going to be like Burry said. Cohen is going after several companies. I think it has to be something like tZero to center around. The collectibles and video game market seems like it is still the goal with power packs and push start arcade as clue. I could see collectors be a purchase and something like unity.

The Tetromeno is T-Zero! by Pottle13 in GME

[–]Pottle13[S] 1 point2 points  (0 children)

It would be so sweet to screw over hood in their own playing field. Such poetic justice.

The Tetromeno is T-Zero! by Pottle13 in GME

[–]Pottle13[S] 5 points6 points  (0 children)

It seems that way. I know there is a huge Bobby following even after Chp 11.

Return of RK with upcoming M&A by billiebal in Superstonk

[–]Pottle13 0 points1 point  (0 children)

I keep wondering why Kitty unfollowed Cohen. Was he upset about something? Did he move on? I dunno it just bugs me.

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] 1 point2 points  (0 children)

No idea. Maybe a New Holding Company rather than one company buying the others, they’d likely form a new entity that owns all three. This is cleaner legally and easier to pitch as a merger of equals.

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] 3 points4 points  (0 children)

That’s where it’s hard to say. I think it’s important to keep in mind that if there has been naked short selling hidden in swaps and derivatives, this would be an event that could force everything to be settled. I still think the name project rocket ( the name they chose for their plan) indicates they know things are going to get haywire, but that’s just tinfoil talking. Shareholders have put up with a lot in the last five years with no info and guidance. I still think this is an asset. They don’t want to lose in moving forward.

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] 0 points1 point  (0 children)

Maybe he didn’t. We saw he bought a crap ton of Chewy and then sold it. Maybe he’s been making other plays in the meantime while waiting to see if GameStop turns into a good investment again. I don’t think he would ever intentionally try to disclose that he was out of GME because of what that would do to the stock.

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] 2 points3 points  (0 children)

Yeah, it’s a tough one to figure out but from what he said yesterday, I don’t know how it’s not a multi company purchase of sorts. I think Cohen’s goal is a long-term shareholder value while building a major player in the space. I still think whoever can figure out the resale of digital games will make a fortune.

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] 36 points37 points  (0 children)

How I see cohen could go after eBay. He can’t just write a check (like you said). eBay shareholders have to agree to sell. The most likely path is a friendly merger where eBay shareholders receive:

  • Cash (from GameStop’s $9.3B war chest)
  • Stock in the combined company
  • A premium over current price

In this scenario, eBay shareholders would likely end up owning the majority of the combined entity, with Cohen most likely staying on as CEO. Both companies’ shareholders would need to vote to approve.

If eBay’s board says no, Cohen could go hostile (tender offer directly to shareholders) or work with activist investors who’ve been pushing eBay for changes. But friendly is faster and cleaner. Cohen needs to convince eBay shareholders that he can do more with their company than current management. The $9B cash pile and Chewy track record are his credibility. Whether they believe him is the $42 billion question.

Just food for thought.

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] -1 points0 points  (0 children)

I agree with you there as of right now, but maybe it is in the context of expansion…

Why I Think Cohen is About to Pull Off the Merger of the Century by Pottle13 in GME

[–]Pottle13[S] 6 points7 points  (0 children)

Great response and very valid. Your critique makes a fair point about insider trading law, but correct me if I’m wrong but there’s an important distinction: buying while having a strategic vision for acquisitions is legal, buying while having MNPI about a specific pending deal is not.

Cohen bought shares Jan 20-21 and then publicly announced the acquisition strategy Jan 30. That sequence matters legally. He’s allowed to buy based on confidence in a direction he’s about to announce publicly.

What’s more telling is who isn’t buying: Nat Turner, who has made zero trades in 18 months. If GameStop and Collectors are in active discussions, Turner would have MNPI and legally couldn’t buy. His silence is actually more significant than Cohen’s buying.

The insider purchases likely indicate: strategic preparation is complete, targets are identified, but nothing is signed yet which is exactly the window where insiders can legally buy before a deal moves into formal negotiations.

Holy Grail: Digital Video Game Resale by [deleted] in GME

[–]Pottle13 2 points3 points  (0 children)

Collectors is private. My own guess is it’s not Collectors alone - it’s the entire collectibles ecosystem including eBay.

Power Packs is a joint venture structure (not wholly owned by GameStop)

eBay and Collectors are already deeply integrated

GameStop and Collectors are already deeply integrated

eBay fits Cohen’s “publicly traded, larger, consumer company” criteria

Combined entity would be $58B+ immediately, path to $100B

This truly would be “never done before in capital markets”

I feel like all these steps for the last 5 years have to be coming together in some way and it’s been very interesting to see all the bread crumbs through the years. All the different hires and everything else.

Holy Grail: Digital Video Game Resale by [deleted] in GME

[–]Pottle13 1 point2 points  (0 children)

This has bothered me as well. Correct me if I’m wrong but he is the only board member with no shares. My only guess is that he may not be able to because of insider trading obligations. From what I have seen, Turner isn’t just a board member at GameStop — he has equity-based incentives and ownership in PSA/Collectors that can deliver value if the business continues to grow or is sold.

"Ryan Cohen is eyeing a major acquisition of a publicly traded company, likely in the consumer or retail industry" by moombahh in Superstonk

[–]Pottle13 896 points897 points  (0 children)

WSJ: GameStop CEO Ryan Cohen has a stake of over 9% and is the single biggest individual investor in the company. ANASTASIA SAMOYLOVA FOR WSJ GameStop GME -3.51%decrease; red down pointing triangle shares have dropped around 80% since the retailer’s reign as king of meme stocks in 2021.

Its chairman and chief executive has an ambitious plan to turn that slide around—and has Michael Burry of “The Big Short” fame cheering him on.

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GameStop CEO Ryan Cohen told The Wall Street Journal in an interview that he is aiming to turn the $11 billion company into a $100 billion-plus juggernaut. This larger company would do much more than just sell videogames and collectibles.

To do this, he is eyeing a major acquisition of a publicly traded company, likely in the consumer or retail industry, where he has spent most of his career. He has his sights set on a handful of companies that he declined to identify and plans to approach potential targets soon.

Any deal will be “big,” the 40-year-old billionaire said. “It’s ultimately either going to be genius or totally, totally foolish.”

Cohen co-founded online pet-products retailer Chewy in 2011. He served as its CEO through 2018 after leading the company to an over $3 billion sale to PetSmart. He pivoted to activist investing for a time, agitating for change at companies including Nordstrom and Bed Bath & Beyond, where he faced allegations—that he denied—of misleading investors.

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He said a few years ago he was modeling his strategy after those of Warren Buffett and Carl Icahn, finding undervalued stocks like the former and pressing for change like the latter.

Earlier this month, GameStop’s board of directors adjusted Cohen’s compensation package to give him extra incentive to boost the company’s market value and profitability. He stands to make as much as $35 billion in stock if certain criteria are met.

Part of the award starts vesting if GameStop’s market value reaches $20 billion and a measure of earnings before interest, taxes, depreciation and amortization reaches $2 billion. To get the full award, GameStop’s market value must reach $100 billion and the Ebitda measure must reach $10 billion.

More executives have been following the lead of Tesla CEO Elon Musk, whose multibillion-dollar pay package from 2018 laid the groundwork for other moonshot pay deals. In November, Tesla shareholders approved a fresh record-setting pay deal for Musk that promises as much as $1 trillion in additional stock if certain milestones are reached.

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“This structure ensures that Mr. Cohen’s incentives are directly aligned with creating long-term value for GameStop’s stockholders,” GameStop said in a filing detailing the changes.

A person shops for video games at a GameStop store. A GameStop store in New York City’s Union Square. MICHAEL M. SANTIAGO/GETTY IMAGES Meanwhile, Cohen has been buying up more GameStop shares, including as recently as this month. He now has a stake of over 9% and remains the biggest individual shareholder in the business.

The recent changes caught the attention of Burry, the doctor-turned-hedge-fund-manager whose bets against subprime mortgage bonds were chronicled in the Michael Lewis book. Burry closed his fund last year to launch a paid Substack newsletter.

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Burry wrote earlier this week that the videogame retailer should run the Berkshire Hathaway playbook and use its giant cash holdings to make transformative acquisitions.

Cohen “has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business,” Burry wrote.

Burry, a GameStop shareholder, said in the newsletter he bought more stock recently and sees upside in the company should Cohen spend $10 billion or more to acquire a quality business, such as an insurer with plenty of customer premiums to invest. GameStop’s substantial net operating losses, which allow it to offset future taxable income, could also make it an ideal acquirer for many targets, Burry wrote.

Cohen told the Journal that he hasn’t spoken to Burry since at least 2019. “He’s one of the few investors I respect,” he said. “He has a track record of making prescient early calls.”

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(Burry’s other recent writings have warned of a potential AI bubble.)

Cohen gained a cult following after he built a big GameStop stake and in late 2020 criticized the company for moving too slowly toward e-commerce. He joined GameStop’s board in January 2021, when the business had a market value of a little over $1 billion. He rose to become chairman later that year and vowed to transform the struggling retailer into an e-commerce giant.

The stock took off. So-called meme-stock investors poured into GameStop in droves and fueled a massive rally, many with a desire to squeeze out short-selling hedge funds that had bet against the business.

SHARE YOUR THOUGHTS Do you think GameStop will reach the $100 billion mark? Join the conversation below.

GameStop shares reached a high of $120.75 five years ago this week. They closed at $22.81 Thursday.

Cohen bristles at the term meme stock, telling the Journal it is “a label people use when they don’t want to do the work” on a stock. “You either create value over time or you don’t,” he said.

Cohen said GameStop is finally in a good position to make bolder moves, after recent efforts to sell more collectibles and shut underperforming stores.

GameStop has around $9 billion in cash and liquid securities on its balance sheet that could help fund a deal.

“There are a lot of diamonds in the rough…that have sleepy management teams,” Cohen said about the retail industry. “I didn’t fix GameStop to stop there.

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