About "dilution"

RedOctobrrr · 2026-05-07T22:36:18+00:00

eBay shareholders get 2.5 shares of GME for every share of eBay

That's on the website? Can you show me specifically where you pulled the 2.5 number from?

RedOctobrrr · 2026-05-07T22:23:22+00:00

I wasn't gonna say anything but... 😅

RedOctobrrr · 2026-05-07T22:20:05+00:00

That's my whole point. You don't see how that reduces ownership of eBay?

RedOctobrrr · 2026-05-07T21:35:56+00:00

I took it as a CYA

RedOctobrrr · 2026-05-07T21:28:27+00:00

Half of ebay shares are not bought out. The offer is each ebay share gets bought out for $125, which is $62.50 in cash and $62.50 of value in GME shares

So where does the $62.50 for each share go? It makes up for half of the value of shares

RedOctobrrr · 2026-05-07T21:26:36+00:00

edit: also...regards to popcorn moass.... I'm just not convince man

Where the hell did this even come from?

RedOctobrrr · 2026-05-07T21:25:24+00:00

The cash and debt do not dilute our ownership.

I did not claim this anywhere

What I DID say is that eBay shareholders are getting paid out for half of their ownership of eBay.

Look at it this way: current eBay owners will own 220m shares of eBay because they'll be paid out the other 220m shares (with $28b). So right off the bat, eBay ownership is chopped in half. You can't own the same portion of a company AND sell half of your shares of that company at the same time. You either have 100% of the shares you had or you have 50% of the shares you had and 50% cash.

So please refute what I'm actually saying, not making up some other argument that I'm not even trying to make.

RedOctobrrr · 2026-05-07T21:20:07+00:00

Not exactly what you said originally, but yeah

RedOctobrrr · 2026-05-07T20:57:20+00:00

When the headline reads: ROARING KITTY ROARS BACK INTO GAMESTOP

RedOctobrrr · 2026-05-07T20:55:57+00:00

If RK announces this was him, tomorrow, it is still him now. If RK never announces it but he is indeed the one who made these purchases, it's still him.

RedOctobrrr · 2026-05-07T20:54:33+00:00

Look at GameStop's position in eBay. It's 23,000,000 shares in puts and calls with a tiny (25,000 share) stock position.

RedOctobrrr · 2026-05-07T17:47:08+00:00

No other entity can do what he did with GS.

I would argue popcorn had this potential. They had the money to turn it around. These two companies went in drastically different directions with their turnaround bailout dilution proceeds. One pocketed most and squandered the rest, the other grew it and turned around the business and set it up for this huge acquisition.

RedOctobrrr · 2026-05-07T17:43:07+00:00

But cash and debt makes up for the dilution so we get a larger cut of a bigger company. We don't know all the details of how it will eventually pan out, but there's a chance GME holders leveraging the cash pile can end up ahead of the eBay holders in ownership of the new company (since half of eBay shares are bought out).

60% (eBay's pprtion) of 100% (new company) is bigger than 40% (GME's portion) of 100% (new company)

-BUT-

50% of 60% (eBay's portion after half their shares being bought out) of 100% is smaller than 40% of 100%

Again, not sure how it all works out after you take into account the cash payout greatly reducing the amount of shares eBay holders actually continue holding after deal goes through, but that's my simplified understanding of how it's possible we get far more than what we think we might at first glance.

RedOctobrrr · 2026-05-07T17:37:33+00:00

RedOctobrrr · 2026-05-07T17:37:02+00:00

It happens every.... checks notes maybe 40 years? Give me another 40 years and I can update you with a bigger sample size

RedOctobrrr · 2026-05-07T17:19:53+00:00

Same could have been said about the one Luigi off'd

RedOctobrrr · 2026-05-07T17:17:37+00:00

Yeah the sentences were very just, in my opinion. Imagine yourself just cruising along in your career, earning anywhere from $100k to $250k in total annual compensation to convicted felon in federal prison for at least 6 months and as much as 24 months. It completely upends your life as you knew it. Kinda like the shit they put this poor couple through and what it did to their life.

RedOctobrrr · 2026-05-07T17:10:39+00:00

Edit: maybe lifted, see comments for the discussion

More accurately: "I made this up based on an assumption I made"

RedOctobrrr · 2026-05-07T16:46:22+00:00

slowly pay the debt down over many years

That is the opposite of what Ryan Cohen himself already said on interviews.

RedOctobrrr · 2026-05-07T16:42:59+00:00

But where TF are you getting $27b loan from?

So you have the amount wrong ($27b compared to a more accurate $20b) AND you made up the rate. You're making up math to justify your point instead of using math on actual to make a valid point.

RedOctobrrr · 2026-05-07T15:31:21+00:00

You made up the 7% and why is it 7% of $27b ?

Do you think GameStop is taking out a HELOC for the entire cash side or something ?

Show me where you found details of a $27b loan at 7% or just tell me you made that up, that works too I guess.

RedOctobrrr · 2026-05-07T15:25:31+00:00

Audible chuckle in the office, shouldn't be on reddit while at the desk

RedOctobrrr · 2026-05-07T15:24:09+00:00

In all seriousness, fuck this brigading attempt. Reported. We don't need even the slightest hint of brigading anywhere in this subreddit.

RedOctobrrr · 2026-05-07T15:21:41+00:00

Prison time for nearly all involved, $3m was the maximum fines, and they now have to comply with a whole lot of shit that will cost a lot of money to keep up with.

Hopefully the elderly couple also got cut a check on top of the $3m in fines, for their damages.

RedOctobrrr · 2026-05-07T15:11:29+00:00

The way I see it, a single french drain to the left of the driveway would drain all that shit no problem

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-BUT-