In merger and acquisition transactions, Wall Street pricing reflects investor skepticism about deal completion, as evidenced by eBay's stock price not reaching the full bid price despite Ryan Cohen's interest, demonstrating that market participants balance potential deal success against uncertainty and risk.
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Is Wall Street Pricing eBay Deal Close?Added:
Yeah, or that's the other part of this that's really weird.
It's like eBay rejected it and so far it seems like most of the market has discounted the fact that it's going to I mean not the market is hasn't discounted. I mean most people have discounted that the thing's going to happen, but the market is weirdly pricing it like, you know, at least it could happen to some extent. I mean, it hasn't gone all the way up to the bid price, so there's some skepti- skepticism if it will.
It could be similar to, you know, um where people followed him into Bed Bath & Beyond, right? And it's just people that are like I feel like if you if when it comes to buying eBay, like if you like forget about the deal, if you look at eBay and you think that is a business that you like, then sure, [ __ ] buy the shares. Like why not?
Yeah. And to sort of kind of bring in that point that you're that you made, Platinum, that it could be it's just people buying eBay because Ryan Cohen's interested, so, you know, clearly buy eBay.
Usually, you'd have an equal equal balance, so you would go long eBay and short GameStop in an equal amount to cover the arbitrage, but while GameStop's short interest has gone up, it's not anything comparable to the, you know, it's been kind of mostly long both ends of the trade, which seems to make sense for what you're saying.
You know, if if Ryan Cohen's interested, then I'm just going to be long all of it.
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