GameStop Buys EBAY - POISON PILL DEPLOYED?

Added: 2026-05-22

[00:00:00]Hi guys, welcome back. So, in my last video, I was asked a question uh what if eBay deploys the poison pill? And what will that do? The poison pill defense.

[00:00:10]Okay, I'm going to explain this to you guys and why Ryan Cohen is a genius. We get it. So, Ryan Cohen is winning this investment called eBay. He's going to buy the company. He's taking it no matter what. And GameStop wins billions and billions of dollars either way.

[00:00:22]Whether they don't get the company or they do, they still make billions and billions of dollars. But, I'm going to explain that to you because E- eBay doesn't even understand what's happening. They don't understand how it's happening. They don't get it. But, hopefully you get it after this video because I was asked this question about the poison pill defense after I said, "No matter what, GameStop wins." Guys, the point still stands. No matter what, GameStop still wins. But, let me explain to you what poison pill defense is. Now, this was formerly called the shareholder rights plan. You can put in a shareholder rights plan into your company. And when companies deploy this, they they put a timeline.

[00:01:01]And they put a trigger amount. So, I'll give you the example. eBay gets to say, "Hey, we see a a corporate raider coming in. We see a hostile takeover happening.

[00:01:10]We're going to deploy the poison pill defense plan. So, we're going to implement this at a 10% of ownership by whomever, we're going to trigger the poison pill defense. And when we do that, we're going to allow existing shareholders to buy more shares to dilute the ownership of shares so that they never get taken over." Some companies do it. Twitter did this. They did this to Elon Musk. Um it's happened to eBay, believe it or not, via Craigslist. Other companies, um Netflix, 2010, with uh Carl Icahn came in, bought 10%. What Netflix do? They went two for one. They were going to give two for one for all existing shareholders. Come and get it because they wanted to dilute his ownership. The thing you can't do, eBay, you can't do that.

[00:01:55]I'm going to tell you how bad it looks to entrench yourself. There was a case study in 2001-2002 from Notre Dame. Shout out to Bill Pulte. But, the um it's called the enduring illegitimacy of the poison pill, the poison pill defense. And the point is it doesn't work. Most corporate teams, more most board of directors and C-suite, they will entrench themselves within the company to defend themselves, but would you do it at an all-time high?

[00:02:21]Why would you dilute existing shareholders at an all-time high on the stock price? You would never do that.

[00:02:27]That's not That's not good for you.

[00:02:29]Defending yourself is poor governance if it's going to be what's best for the current shareholder, not best for you, the multi-millionaire raking in all this money. You guys don't own any shares at all, eBay. So, it's kind of it's a bad look. But, here's the trick. Here's why why Ryan Cohen is so intelligent and he's winning and he is buying eBay. Listen to me, guys. You guys haven't figured this part out yet.

[00:02:53]Ryan Cohen is buying eBay with their money.

[00:02:57]Do you understand?

[00:03:01]Pay attention.

[00:03:03]eBay has a share buyback program right now. $3 billion in February they earmarked for their company. 2 and 1/2 billion being share buybacks, 500 million being dividends.

[00:03:17]Great. Guess who owns eBay?

[00:03:20]Ryan does. Guess whose increase in percentage of ownership increases the more they buy back shares. They're spending 2 and 1/2 billion to buy back, guess what happens? He increases his ownership every time they buy a share.

[00:03:33]He's using their own money against them and they can't figure it out. The stock price is going up up up. He goes up up up. Every dollar that he put into eBay is a dollar gained. He's making millions and millions of dollars for GameStop with this investment. The takeover's happening and it's happening at eBay's expense. When the board of directors cuz they can't figure this out, but the rest of the the actual institutional investors, 95% of them, they're going to figure this out real soon. They haven't figured out Ryan Cohen's game. They don't They don't understand his leverage. They've never seen it happen this way. Hey guys, he's a genius. Am I spelling it out for you? GameStop holds position in eBay. No matter what happens, if eBay stock goes up, GameStop's earnings go up because they have they have profit, unrealized gains that they get to put on their sheet. If their earnings go up, their price goes up.

[00:04:26]GameStop's does.

[00:04:28]Yes, valuation on the market, boom. Give them what they're worth.

[00:04:31]Now, what happens? You get less GameStop and eBay, guess what they have to do?

[00:04:36]They have to sell 125, don't they? Cuz Ryan keeps buying shares at 115, 110, 140, whatever they may be.

[00:04:42]He's buying shares below that threshold, meaning he's taking more of their company every day. He's taking their lunch money. They're paying for it.

[00:04:51]They're giving him an increased price and value and he's getting it himself on his own end. It's a win-win. You can't lose. Buy GameStop shares. That's what I'm doing. You do what you want. I own a lot of them. You probably own more than me, who knows, but I've been doing this because I believe in what's happening right now. Poison pill defense will not work.

[00:05:10]It's going to be their own demise. It will be because that's traditionally what's been happening for the last 30 years in corporate America, but what I'm telling you is this, the ultimate trump card, no pun intended, is that Ryan Cohen is buying eBay with their money.

[00:05:26]They just haven't figured it out. Peace.