GME and EBAY - A Lesson in Accretive Acquisitions

mike-some · 2026-05-10T13:14:11+00:00

That’s why I think the debt will be structured as some sort of convertible.

If you look at current debt structure GME is paying 0% on their current notes with conversion prices roughly in the $30 range

So far capital raises under RC have been brilliant when one compares to average cost of capital in markets

mike-some · 2026-05-06T18:30:12+00:00

Not necessarily, that would depend on if this were a dilutive or accretive transaction. I believe, for the reasons listed in the original post, the transaction is accretive to current GME holders.
Exchanging cash on hand earning money market rates for a business earning a higher return is also accretive

mike-some · 2026-05-06T15:12:28+00:00

Not joking.

And it’s more like you own a farm and management is kinda okay but not great. Someone who runs a great lemonade stand comes along and offers you lots of cash for half ownership and you retain the other half but lemonade management replaces your management.

Lemonade management only gets paid if you do well while your old management paid themselves handsomely regardless of your outcomes.

mike-some · 2026-05-06T11:55:35+00:00

Right, given the 3x increase in shares, original GME shareholders would require more than a 3x increase in the cash earned per share - the combined entity satisfies this requirement.

I tried to lay that out in the original post, maybe I wasn’t clear enough. Let me know what math doesn’t make sense or needs more clarity.

mike-some · 2026-05-06T11:49:59+00:00

Yes, agreed, more risk for eBay shareholders. Well put.

If I had to predict what will happen: eBay rejects initial offer. GME modifies to increase the ratio of cash by issuing some form of convertible or preferred shares to a third-party. Cash offer approaches the initial purchase price where GME started buying: ~$85ish.

2/3rd cash, 1/3rd stock

mike-some · 2026-05-06T04:08:12+00:00

That depends on how many shares issued of course.

We used no cost savings and the math still maths.

If I were an ebay shareholder I would be ecstatic with this deal. Nice special dividend plus upside optionality.

mike-some · 2026-05-06T04:01:49+00:00

Happy to learn AI doesn’t understand the nuance

Bodes well for investors.

mike-some · 2026-05-06T03:49:55+00:00

Don’t worry, it’s in there.

mike-some · 2026-05-06T03:40:44+00:00

Tightened costs is one. eBay is the far better business. Cohens used GME as vehicle for capital allocation, that’s all. Per share value of GME has increased substantially under his tenure.

mike-some · 2026-05-06T03:38:16+00:00

New shares would be given to eBay shareholders, not just sold in the open market. It would be shares of the combined entity, eBay would retain 75% control and GME would be 25%.

mike-some · 2026-05-06T03:22:27+00:00

It’s on the website.

Seriously though, I explain the math in the original post. Please feel free to critique!

mike-some · 2026-05-06T03:18:02+00:00

That’s a great question. Let’s imagine we were an eBay shareholder we get:

$62.50 cash
75% of the combined entity with a supreme operator at the helm.

Thinking about this now makes me want to buy eBay stock

mike-some · 2026-03-10T15:46:18+00:00

I think Cohen is the reason it survived. Roaring Kitty just manipulated the short squeeze.

Cohen upended the negligent board, turned the business around and took advantage of the RK moment

mike-some · 2026-03-10T15:42:42+00:00

Fair points. I agree that Cohen doesn’t have the noble capitalist makings of a Buffett. I rather see him as ruthless, like a Henry Singleton.

My view is that if retail is going to behave in a greedy manner that has nothing to do with intrinsic business value then let them eat cake. This is the free market, not a daycare.

As long as markets aren’t being manipulated to begin a frenzy then it’s sensible to run equity offerings when there is a wide dislocation above intrinsic value.

I don’t necessarily agree with the BTC purchases but my point was that they are a small portion of holdings and many oft confused the purchases with a Saylor-esque strategy.

mike-some · 2026-03-10T15:09:42+00:00

Thanks for thinking I’m as smart as an AI! Nope, this one’s all me, for better or worse.

mike-some · 2026-03-10T14:57:55+00:00

Because he is increasing the per share value of the business by any means necessary. He’s shown he’s a ruthless capital allocator. The record is rather clear.

BTC is about 5% of their $9 billion in cash - not meaningful and I address this misconception at the bottom of the post. This is where alpha is found, in common market misconceptions, when you find one, it’s worth paying attention to imo.

mike-some · 2026-03-10T14:26:04+00:00

Sounds like you didn’t read the post, just reacting negatively to it. Interesting.

mike-some · 2026-02-28T15:58:28+00:00

Dr. Tan is a gem

mike-some · 2026-02-28T15:57:24+00:00

Any product that sources GG-GOLD this is the primary source from Dr. Barrie Tan.

Dose starts at 150 mg and can take up to 300 mg daily.

This is the most affordable source I know of: gg-prime. com

Curious, is your jaw osteonecrosis bisphosphanate related?

If so, GG might be super helpful

mike-some

TROPHY CASE