GameStop is attempting one of the boldest moves in recent market history

Added: 2026-05-16

[00:00:00]Uh, GameStop, uh, the the meme stock of the of the decade, uh, that famously went viral and reached a market cap that was insane years back, um, is in the news because they're basically [clears throat] the the owners of this guy, Ryan Cohen. So, he has put in an unsolicited bid to buy eBay.

[00:00:22]So, GameStop essentially wants to buy eBay in what would be kind of a reverse merger where you have the small fish trying to buy the big fish. So, the bid is for $56 billion to buy eBay. Problem, GameStop's worth $11 billion.

[00:00:37]So, let's do the math here. How does an $11 billion company buy a $56 billion company? Well, part of it goes back to that meme stock craze.

[00:00:48]Um, yes, there's some cash involved, there's investors involved, but one of the big one of the big ideas here is that that GameStop is going to create basically a billion new shares and put them out in the open market with the hope that its current price will attach to those new shares. So, people are going to get into the frenzy and start buying up GameStop. And now you're going to have way more shares, but at the same current price per share.

[00:01:17]And then with those new revenues, they buy eBay. I'm simplifying it, but that's the idea. And now you have this new conglomerate. Um, if it if it doesn't work, then now you've just got you just completely diluted the share price for GameStop. You're not going to buy eBay. And Michael Berry, who was famous for The Big Short, he was in 2008 called the financial crisis before everyone else, inspired the movie, the minute this announcement came out, he sold all of his GameStop shares. He's out. And so, very risky move, we'll see what happens here. Um, I will say that this is Cohen, he's done it before.

[00:01:58]He bought the company, what was it called? I got it written down. Chewy.

[00:02:02]The dog food company, Chewy, which is actually a really great company. He made that a real company. So, probably, you know, maybe don't bet against the guy, but boy, this is a big gamble.