As a avid eBay customer I am pretty relieved. I buy 2-3 items a month and was selling for the last 2 years on the platform. It's come such a long way and is really a great, streamlined experience. Of course I'm sure folks that make their living off their stores & sales will have different opinions, but I'd say as a routine customer and seller it doesn't need an external company's takeover pressure on it.
I buy and sell through eBay about once a month and I agree. eBay isn't perfect but over several hundred transactions and a few disputes that were settled fairly I've had a good experience. I know it's possible to have a bad experience and I'm not discounting those stories, but it's not the standard eBay experience.
GameStop was trying to do a Private Equity style takeover. Everyone hates it when PE companies do that, but GameStop is an lol memestock so that fact was overlooked with all of the to the moon comments. I do not want any platform I use being taken over by in a highly leveraged takeover, especially not by GameStop.
I was selling NES/SNES games + boxes. After ~2 years of sporadic sales, I ended up just offloading them to a guy who has a huge used games outpost at a flea market.
I buy a mix of things: clothes, watches, and usually tiles from my favorite pottery in Michigan: Pewabic.
Not parent, if you want to sell an old original video game you know has value, it's either the proper collector channel (slow, super involved, higher pay), the generic resale channels (fast, no effort, lowest amount possible) or ebay (relatively fast, a bit involved but not too much, pay depends on how good you defined the product).
I had some old stuff around that Mr everyday might find (eg pristine original Gameboy Pokémon cartridge without box), and quick resale would give me 10 euro, involved resale would ask me hours and hours of work ebay allowed me to sale for 120+euro spending 1h on the description and picture (to show the scratch etc).
Another case is "oh you have the msi ge77vx4 laotop and you look for the plastic keyboard map in azerty? You can pay a 500e rma if they even allow it or buy the piece for 20e on ebay and fix it yourself"
Ymmv but it has a specific place that no one really have right now
I frequently buy project car stuff on Ebay. You can find OE stuff with the part numbers scratched off that must have "fallen off the assembly line" pretty easily. Easily a few items per month between that and computer parts!
I backed into my garage stupidly and broke my RAV4's side mirror. I found a guy in Japan who was selling the exact part I needed (the cover for the mirror matching my paint color), OEM for $50. It's like Craigslist but global on eBay. Never change.
There's a lot of low volume and niche stuff sold by industrial ecommerce (grainger, Mcmaster, etc) and sites specializing in a given niche that those sellers cross list to eBay (the higher volume stuff is typically sold on Amazon)
I'm the same way as OP. I'll go clean out my basement, find a load of old tech and just put it up in a bundle or sell it individually for dirt cheap. Likewise, I buy a lot of stuff like minimal wallets, micro-electronics like charging cables, dongles for my work laptop, phone cases. Just typically a lot of knick knacks or older tech stuff. There's a booming economy for old walkmans and cd players. Same thing with higher end audio stuff like older DAC's, speakers, amps. A lot of unique stuff you can't find on Amazon or elsewhere.
I really thought it was going to be the other way around.
I am quite confident that if GameStop bought eBay, they would ruin it in the same way that K-Mart buying Sears ruined that company.
I could be wrong, I'm not a business person, but it seems kind of obvious that a company like GameStop, whose current existence appears to be due to a weird short squeeze anomaly, is not a sustainable business.
The TD Bank securities commitment of 20B to finance the deal and GameStop having a market cap far below the acquisition cost suggests that buying eBay would’ve been very problematic and risky for investors. But comparing it to K mart buying sears isn’t really accurate to me.
Like yeah, GameStop clearly fits into the death of retail, and acquiring eBay does increase their market visibility or presence. Beyond that, what ebay/GS could’ve gained is way different and arguably more substantial than what acquiring Sears did for either company involved. Atleast here, one operates storefronts for second hand transactions and the other expressly doesn’t. There is definitely money in that.
If eBay thought having storefronts would be advantageous, they would have them. It doesn't make a lot of sense for eBay to merge with Gamestop only for the combined entity to decide that the most sensible first thing to do is close all the Gamestop locations.
The physical Gamestop locations are also horrifically overprovisioned to be an eBay storefront. Many companies have already experimented with things like "lockers" which seem to be successful enough to hang around, probably because the costs are low enough they don't need to do much to justify themselves and they don't need dedicated store fronts. If they want better assurance that the things being shipped are what the sellers claim they are a partnership with UPS or Fedex and their wide variety of existing storefronts that are already provisioned with everything you need to ship almost anything makes orders of magnitude more sense, and nobody has to "acquire" the other to make that work, without the square footage of a Gamestop location.
I'm not sure I follow/buy the premise of moving second-hand sales to a physical building as beneficial to eBay.
If I'm looking for X, I'd much rather go to an online store, where I have access to several listings of X at varying prices and condition, vs. make a trip to a physical store, see if they have X, and hope that the condition and price matches my expectations.
Maybe if I'm not looking for X, and just want to browse a bunch of stuff (e.g. yardsale/flea market style), then a physical store could make sense.
But, to me, having this middle-man physical presence was already a problem, and eBay solved this.
I just don't feel like eBay needs GameStop.
Now, whether GameStop needs eBay is a different story. But GameStop is in trouble for two reasons:
1. Video games -- and therefore video game sales -- are moving to digital.
2. Physical stores are becoming a thing of the past for retail transactions.
^This. The crazy part is that in today’s PE-style system of things, the incentives…
- GameStop shareholders
- GameStop the company - e.g. employees
- eBay shareholders
- eBay the company - for example its employees
…aren’t necessarily aligned.
If GAME buys EBAY - it’s an exit for the EBAY shareholders, which is easy for them to evaluate as it’s presumably a $ premium over the share price today. If GAME then runs the company into the ground trying to free up the cash to pay off the acquisition debt, as most leveraged buyouts do (especially where retail is involved), that’s not a problem for those already-exited shareholders, though it is probably a problem for employees of either company.
If this deal does eventually go through, then it might be a good time for someone to start working on a competitor to take over the online auction space.
I could see it potentially be something like the Walmart pickup service? Last mile delivery is pretty expensive, so conceivably they could offer faster and/or cheaper shipping if you picked it up at a physical store.
I don't know. I don't think this acquisition would be a good idea.
>> whose current existence appears to be due to a weird short squeeze anomaly, is not a sustainable business.
I remember working in a CD Warehouse in the early aughts. Our store was next door to a Game Stop. The woman who worked at the Game Stop would come over and chat music with me when her store was slow. We used to joke about how both of our industries are seemingly dying a slow death. Console and game prices were going through the roof at the time. Compact Discs were being replaced by downloadable music. A few months before I quit, we finally started reselling DVD's to buoy the CD reselling part of the store.
As it turns out, the gaming industry outlasted the CD reselling business by quite a bit. lol
Gamestop turning into an eBay storefront makes a lot of sense to me and this seemed to be a very rational step to take when the short squeeze anomaly left them with billions in the bank and a business model that no longer makes very much sense with physical game sales being eaten by digital-only sales along with the potential decline of the console.
They already have the position of used buying and sales, extending that into in store receiving and listing of items on eBay makes sense. eBay being in decline as well.
I've yet to see a convincing vision of what an eBay physical store looks like that doesn't kind of boil down to a UPS store. The vast majority of their business comes from 3rd party listings and the only real stock they have and sell are in the eBay refurbished line. I'm really not convinced of what a successful eBay store would even be there for.
I've seen some say for authentication but staffing employees able to perform that authentication at even a fraction of existing GameStop stores would be extremely expensive (unless it's terrible authentication) so it again devolves to basically being a UPS store but for eBay shipping items out to be authenticated. Similar to what GameStop does with Pokemon cards and PSA grading except you can't really slab a Rolex or handbag so the authentication is only good so long as the good remains in the hands of the authenticator.
The only small service I think they could offer is a way for sellers to certify what's being shipped to avoid contests, but having that in every GameStop store is also very expensive for a cost they currently just shift onto sellers by siding with the customer. eBay could easily implement that if they wanted by partnering with UPS stores or a program where sellers video the packing or something.
I think you’re right about Kmart/Sears, though the interesting thing was that Lampert was correct that Sears had a great deal of real estate which had tremendous value. If someone skilled at retail had bought it, they could have used the money from selling some of that, to fix the business. Of course, Lampert was only skilled at finance and RE and very obviously just planned to gently wind down the business while selling off its assets, which is much less risky to do than fixing it - and may have yielded better financial results anyway.
That’s why the popular perception is that the Kmart transaction and Lampert killed it, even though their lot had really been cast 15+ years before, when they stopped innovating, and really stopped investing in their stores completely, without getting serious about e-commerce either. That poisoned their brand, which made it really hard to imagine turning it around.
I agree that if GameStop were basically rebranded as eBay brick and mortar stores, that might work. I guess I just feel like if it were GameStop itself that were managing it then it would be unlikely to actually work.
It's not like digital storefronts are new; I think GameStop should have been pivoting the moment that Steam started getting traction.
You guys might not have seen the recent interviews (last week) with gamestop CEO Ryan Cohen. Gamestop has already pivoted, game and console sales are cyclical and hard to base a business upon. They have leaned hard into collectables as a way to expand their business and retail model.
I am unsure how a Gamestop/eBay storefront would do. Physical manifestations of "eBay stores" have existed in the past and none of them did very well long term.
Dunno how gamestop’s logistics works but they could leverage the existing shops as dropoff points for sellers and offer a pickup point option to bypass the postal system. eBay sellers are at a disadvantage vs Amazon warehouse sellers when it comes to shipping costs.
At least my shipping broker in Canada uses small retail stores as dropoff points and then has a network of gig courier delivery companies they send stuff to for last mile delivery. Saves a lot on shipping costs.
I’ve noticed they don’t really integrate with gig couriers for last mile US shipments, just a few consolidators for mid-mile (eg: UPS Mail Innovations that uses USPS for last mile)
Might further delay delivery times but I use eBay to save some dollars in exchange for delayed gratification.
I don’t know about everybody else but I both sell and buy on eBay items that are more niche but not totally bespoke like on Etsy (e.g. photography equipment or specific hats).
Which means an eBay store would never make sense for my type of buyer or seller because I would just go to one of the many other existing entrenched retailers.
I know eBay pushes hard for regular retail but ultimately I see it as a marketplace for less fungible items and that’s what it excels at. Regular retail for regular items is easier because the user experience is always standard.
GameStop is trying to sit in the middle and trying to move product that is a little more fungible (previously used games and now more trading cards and collectibles) but I just don’t know how big of a market it is when you have to factor brick and mortar upkeep. I don’t want them to take down eBay in an experiment.
>I am unsure how a Gamestop/eBay storefront would do. Physical manifestations of "eBay stores" have existed in the past and none of them did very well long term.
A key here I think is the easy gradual transition here because Gamestop already has the used games business they could slowly integrate that into listing used games on eBay that were received at stores and then add related categories step by step with collectables and consumer electronics. There'd also be options of ebay items delivered to store which increases store traffic and doesn't involve giving strangers on the internet your home address, and there might be opportunities there to enter logistics and lower delivery costs for people.
For the benefit of all the people on this thread not understanding what the proposal is for the acqusition:
"A leveraged buyout (LBO) is the acquisition of a company (typically by a private equity firm) using a significant amount of borrowed money (debt) to meet the purchase price, often 60% to 90% of the total cost. The target company’s assets are used as collateral for the loans, which are repaid using the company's future cash flows."
Everybody understands the proposal. They also understand that an offer of $20 billion loan + $7.5b cash in hand + stock in Gamestop valued by the market at $11b = $37.5b, which is < $55b, a discrepancy Cohen has not been able to account for. Ebay also understands that leveraged buy-outs are a death sentence, and that saddling its operations with $20b of debt in exchange for gaining a dead business like Gamestop would eventually kill it.
Also when you count that 7.5B cash on hand as part of the deal to me that's to some extent double counting to include it and the current market value of all of GME's stock. At least part of the stock's value comes from the existence of the cash so it's not wholly separate from the value of the stock.
The context this comment misses is Gamestop's secret weapon is their CEO Ryan Cohen who has been sitting around the hoop trying to figure out how to leverage Gamestop's fundraising capabilities to do something big
Couple of highlights on Ryan
- Built and sold Chewy from a startup to the largest ecomm acq of all time
- Became #1 individual shareholder of Apple early on
- Bought a 10% share of Gamespot in 2020 becoming largest personal shareholder
- Took over as CEO after being a proactive board member, works for no salary
You should also mention that Cohen never managed to turn Chewy into a profitable business before selling it off.
Similarly, his strategic initiatives at Gamestop have all been failure (e-commerce push, NFTs, digital games platform, crypto investments, ...). The only thing that has worked is aggressively cutting costs, mainly by shutting down stores, which was a plan that had already been proposed by BCG before Cohen came onboard.
Basically, he has done nothing except for taking credit for a plan that was already in motion and repeatedly diluting shareholders to raise funds that have been sitting in T-Bills ever since. There is no indication whatsoever that this guy is some kind of business genius who would be able to run Ebay better than the current management - quite the opposite actually.
Yeah I've never thought that that was the win that people seem to think it is. When you're that high up in the company, you have so much stock that you can pretty easily get loans against for however much you need, and write off the interest in the process.
They have to trot it out because otherwise there's not much else to pimp about Cohen as CEO and this attempted deal seems much more oriented to juice the total market value of GME to more easily meet the criteria for his recent pay package rather than a great idea for either company on it's own.
Seems like a no brainer for people who want to go into a physical store without dealing with the hassle of waiting for the item to sell along with packaging and shipping.
ebay started attempting consignment more than ten years ago, but I think lately they only do it for luxury items. Which makes sense to me as a lot of people would just send in junk. https://pages.ebay.com/ebay-consignment/
I do. Its great. You can walk around, look at things, talk to people, maybe buy something you wouldn't based on cover art or whatever. You get to drive a little, listen to some music.
I could maybe see this argument in 2018 or something
In 2026? Online shopping is full of low quality knockoff crap, with deveptive listings that are trying to trick you. Yes, I absolutely prefer physical stores again. In fact I've pretty much stopped online shopping altogether again
Okay, but Gamestop has very little of the benefits of physical stores, you're not going to inspect the quality of the games without loading it into your machine, and the major auxiliary purchase available for sale is a bunch of Funko Pops.
Me. I love the experience of getting out of the house. Also, online shopping is an extortionist on certain items. There are so many things that are 1/4 the price in a physical store than they are online due to shipping and logistics.
Well if you’ve seen the CNBC interview with the GameStop CEO he couldn’t answer basic questions about the deal so the outcome here isn’t surprising.
The interview was so bad the first time I saw it I thought it was some sort of satire bit. No, it was real and the commentators were literally speechless.
Tbh, if you can convince someone to take your relatively worthless pieces of paper in exchange for your valuable asset, then your worthless pieces of paper are no longer worthless.
Not much different than me having a bit of cash and putting 5% or 20% down to buy a home or car: now I’m a big asset and debt holder and you got some pieces of paper with dead presidents on it.
That was the hard part of the deal: will (enough) eBay shareholders want to be GameStop shareholders.
eBay shareholders would be right to be upset with eBay management. eBay has treaded water in a niche of online shopping while online shopping has grown massively. Whether GameStop is their solution or not, Iunno.
Just saw this for the first time. How someone can show up on a major network like this is beyond my understanding. Literally couldn't answer where the money would come from.
He works his ass off. You obviously can't spot a bear trap :-) The lower range of $GME the past couple of years is nowhere near where the shorts are going to have to buy-in.
It was a clown-show interview, but also likely on purpose from the CEO. The CEO does not like CNBC (their history of reporting on GME as a meme stock), and his schtick plays to retail investors. The problem is to get a deal like this done he needs to convince non-retail investors to come along. He also clearly didn't want to say 'dilution' when pressed about where the rest of the stock would come from.
CNBC hard fumbled in that they didn't even understand what the offer was. The CEO put that on full display and embarrassed the hosts basic knowledge of finance. It was hard to watch.
The math doesn't actually math. Even if you're not discounting the cash on hand from GME's value all of GME's market value, plus their cash on hand, plus the "highly confident" $20B still doesn't add up to the take over value in Cohen's letter.
I have absolutely no clue how you could watch the interview and come away with this conclusion. The purpose of an interview is to ask Socratic questions to allow the guest to talk about something of which they have intimate knowledge.
The CEO made it seem like he himself didn't know how the math for the offer worked, and even when presented multiple opportunities to correct that impression, he made no attempt to convince anyone otherwise.
I imagine the actual reason why Cohen didn’t answer the question is that he would have to admit that if the combined entity issued enough shares to pay for the acquisition, it would substantially dilute existing shareholders.
I agree, but he had to know he'd be asked the question, right? And he had to know that staring blankly and mumbling about the offer being on the website wouldn't suffice as an explanation. It's just mind-boggling behavior from the CEO of a public company.
Yes you do. He came away with that conclusion because he entered with that conclusion. When you're already radicalized to a specific outcome, you lose the ability to perform the process of elimination.
> I have absolutely no clue how you could watch the interview and come away with this conclusion.
The reason is pretty apparent. They are bagholders. People like this show up in every thread about Gamestop boasting about how amazing Cohen is in a weirdly personal manner, and have a very fantastical view of how things are going to go -- because their investment depends on it, and they built a literal cult around the idea that GME would make them rich, which necessitates viewing reality a little differently from the rest of us.
The Performance Hurdles will be adjusted by the Committee equitably and proportionately as determined by the Committee in a manner designed to preserve the economic opportunity provided under the Award, (a) higher to account for acquisition activity for which stock is provided as consideration; and (b) lower to account for a split-up, spin-off, dividend or other distribution (whether in the form of cash, shares, other securities, or other property) or divestiture activity, in each case, that could be considered material to the achievement of the Performance Hurdles, as applicable.
Matt Levine's recent opinion piece for Bloomberg ("GameStop Doesn’t Have Enough Stock", https://archive.ph/3h8wf) goes into a bit more detail about it, including why such an acquisition might still help him get there even if it doesn't instantly get him halfway.
There's nothing in Ryan Cohen's career that instills confidence to me. He seems like another tech leader that just got lucky at selling their company (which was only unprofitable for the majority of its lifetime until very very recently) during an economic era that is unlikely to return in any of our lifetimes (or our children's lifetimes).
"We are asking our stockholders to approve an amendment to our Third Amended and Restated Certificate of Incorporation, as amended by the Certificate of Amendment dated June 2, 2022 (the “Existing Charter”), to increase the number of authorized shares of our common stock to 2,500,000,000, and correspondingly increase the number of authorized shares of all classes of our stock to 2,505,000,000 for the reasons discussed below. Our Existing Charter currently authorizes the issuance of 1,000,000,000 shares of common stock and 5,000,000 shares of preferred stock."
Cocaine (or whatever their CEO is on) doesn't buy itself.
Edit: Also, the fact that company leadership can get away with this kind of thing, fleecing retail investors for millions/billions of dollars, and face no consequences is...I dunno. I guess it's just normal now. Lawlessness, bribery, favors to the right politicians, lying without hesitation or remorse. People in media clutching their pearls over whatever the Gen Z kids are getting up to on TikTok while this shit is going on is just the icing on the cake.
I mean they make a good point -- ebay isn't a serious company anymore. It really needs someone with a vision to rebuild it. That its limping along and executives are essentially bleeding a previously valuable internet asset dry is kind of sad.
They're doing a terrible job of preventing scams. Right now there are hundreds of listings for GPUs at too-good-to-be-true prices from sellers with 0 feedback or, worse, from old accounts with positive feedback that have obviously been taken over by scammers (all the feedback is from years ago and about unrelated products). Trust is what eBay brings to the table, when they cede that to scammers, they stop being useful...I can get scammed on TikTok any time I want.
(I couldn't believe myself at first seeing things like these happening and this clip in particular, how does one get millions of dollars for such an disastrously wild interview to me feels quite off to me)
The fact that a guy like this can rise to the level of CEO making millions pretty much sums up everything wrong with the world. I don't think I would trust that guy to make a sandwich.
I would admit that when I had first heard the news (from hackernews) and read its comments, people gave multiple examples and convuluted examples on how this all makes sense and the financial aspects. I was left feeling impressed that perhaps gamestop might've been thinking something new.
Then I watched the video.
> I would trust that guy to make a sandwich.
Don't worry, we are just trusting him with around a measly 11 billion dollars.
This isn't even the worst part by the way, somehow the worst part to me feels like there are people who watched that interview and then somehow got even more convinced within this person/gamestop and publicly glaze him.
To them, I have a question like, are we watching the same interview? How can anyone watch that interview and then consider it in any way positively or anything like that, like huh, have we watched the same interview?
Perhaps some of us at first (like within that HN discussion) were/are trying to justify as if it is some massive brain effort by gamestop or anything and its a 5d chess move ,but to me, this interview showed me what the reality is actually.
This is because the community around Gamestop is radicalized by the exact same grievance culture behind the MAGA movement. It even started conveniently in January of 2021, at a point of MAGA's seeming obsolescence. The adherents of this movement have already accepted the final result as guaranteed, and literally every piece of news the world over gets interpreted through the lens of this eventuality that Gamestock's stock price will explode, making them all millionaires and billionaires. Just like MAGA, the community is full of people whose main role is to delegitimize negative news, and reframe it all as instead proof that the mother of all short squeezes is imminent. Today is the perfect day to see this playing out on their subreddits.
alternate link: https://archive.ph/rsC6e
As a avid eBay customer I am pretty relieved. I buy 2-3 items a month and was selling for the last 2 years on the platform. It's come such a long way and is really a great, streamlined experience. Of course I'm sure folks that make their living off their stores & sales will have different opinions, but I'd say as a routine customer and seller it doesn't need an external company's takeover pressure on it.
I buy and sell through eBay about once a month and I agree. eBay isn't perfect but over several hundred transactions and a few disputes that were settled fairly I've had a good experience. I know it's possible to have a bad experience and I'm not discounting those stories, but it's not the standard eBay experience.
GameStop was trying to do a Private Equity style takeover. Everyone hates it when PE companies do that, but GameStop is an lol memestock so that fact was overlooked with all of the to the moon comments. I do not want any platform I use being taken over by in a highly leveraged takeover, especially not by GameStop.
As a seller I'm also relieved. Ebay has gotten bad but I can't even imagine how Gamestop would squeeze sellers.
I agree. eBay has a strong brand, one of the oldest web brands. It should just continue doing what it's doing.
They probably should do more marketing.
My engagement with adblocking technology is such that I actually have little insights into how much marketing ebay does.
Don't they do TV commercials, engage with creators on ebay live, and have normal Adsense type ads?
eBay stock is at all time highs, but sure, I'll bet you could do better.
Why? Who isn't aware of eBay?
Are you trading collectibles? I’m just genuinely curious what someone would buy with 2-3 transactions a month.
I was selling NES/SNES games + boxes. After ~2 years of sporadic sales, I ended up just offloading them to a guy who has a huge used games outpost at a flea market.
I buy a mix of things: clothes, watches, and usually tiles from my favorite pottery in Michigan: Pewabic.
Not parent, if you want to sell an old original video game you know has value, it's either the proper collector channel (slow, super involved, higher pay), the generic resale channels (fast, no effort, lowest amount possible) or ebay (relatively fast, a bit involved but not too much, pay depends on how good you defined the product).
I had some old stuff around that Mr everyday might find (eg pristine original Gameboy Pokémon cartridge without box), and quick resale would give me 10 euro, involved resale would ask me hours and hours of work ebay allowed me to sale for 120+euro spending 1h on the description and picture (to show the scratch etc).
Another case is "oh you have the msi ge77vx4 laotop and you look for the plastic keyboard map in azerty? You can pay a 500e rma if they even allow it or buy the piece for 20e on ebay and fix it yourself"
Ymmv but it has a specific place that no one really have right now
I use it for non collectible stuff. I’m always buying weird interesting things. Old computer stuff at least once a month.
I buy most of my physical games from eBay too
> Old computer stuff at least once a month.
So, collectables...
How did you determine that? As someone who also buys old computer stuff from time to time, I wouldn't say they are collectibles.
There's collectables as in over priced stuff and collectables as in what ever you like to collect.
I think the former is more useful, and the latter could be anything.
The GGP was probably thinking the former, the GP being pedantic used the latter.
Literally anything that isn't actively manufactured anymore. Even a lot of specialty stores will just sell through their ebay account.
I frequently buy project car stuff on Ebay. You can find OE stuff with the part numbers scratched off that must have "fallen off the assembly line" pretty easily. Easily a few items per month between that and computer parts!
It's great for used car parts (both buying and selling, as a hobbyist)
I backed into my garage stupidly and broke my RAV4's side mirror. I found a guy in Japan who was selling the exact part I needed (the cover for the mirror matching my paint color), OEM for $50. It's like Craigslist but global on eBay. Never change.
There's a lot of low volume and niche stuff sold by industrial ecommerce (grainger, Mcmaster, etc) and sites specializing in a given niche that those sellers cross list to eBay (the higher volume stuff is typically sold on Amazon)
Probably Pokemon or sports cards.
I'm the same way as OP. I'll go clean out my basement, find a load of old tech and just put it up in a bundle or sell it individually for dirt cheap. Likewise, I buy a lot of stuff like minimal wallets, micro-electronics like charging cables, dongles for my work laptop, phone cases. Just typically a lot of knick knacks or older tech stuff. There's a booming economy for old walkmans and cd players. Same thing with higher end audio stuff like older DAC's, speakers, amps. A lot of unique stuff you can't find on Amazon or elsewhere.
I really thought it was going to be the other way around.
I am quite confident that if GameStop bought eBay, they would ruin it in the same way that K-Mart buying Sears ruined that company.
I could be wrong, I'm not a business person, but it seems kind of obvious that a company like GameStop, whose current existence appears to be due to a weird short squeeze anomaly, is not a sustainable business.
The TD Bank securities commitment of 20B to finance the deal and GameStop having a market cap far below the acquisition cost suggests that buying eBay would’ve been very problematic and risky for investors. But comparing it to K mart buying sears isn’t really accurate to me.
Like yeah, GameStop clearly fits into the death of retail, and acquiring eBay does increase their market visibility or presence. Beyond that, what ebay/GS could’ve gained is way different and arguably more substantial than what acquiring Sears did for either company involved. Atleast here, one operates storefronts for second hand transactions and the other expressly doesn’t. There is definitely money in that.
If eBay thought having storefronts would be advantageous, they would have them. It doesn't make a lot of sense for eBay to merge with Gamestop only for the combined entity to decide that the most sensible first thing to do is close all the Gamestop locations.
The physical Gamestop locations are also horrifically overprovisioned to be an eBay storefront. Many companies have already experimented with things like "lockers" which seem to be successful enough to hang around, probably because the costs are low enough they don't need to do much to justify themselves and they don't need dedicated store fronts. If they want better assurance that the things being shipped are what the sellers claim they are a partnership with UPS or Fedex and their wide variety of existing storefronts that are already provisioned with everything you need to ship almost anything makes orders of magnitude more sense, and nobody has to "acquire" the other to make that work, without the square footage of a Gamestop location.
I'm not sure I follow/buy the premise of moving second-hand sales to a physical building as beneficial to eBay.
If I'm looking for X, I'd much rather go to an online store, where I have access to several listings of X at varying prices and condition, vs. make a trip to a physical store, see if they have X, and hope that the condition and price matches my expectations.
Maybe if I'm not looking for X, and just want to browse a bunch of stuff (e.g. yardsale/flea market style), then a physical store could make sense.
But, to me, having this middle-man physical presence was already a problem, and eBay solved this.
I just don't feel like eBay needs GameStop.
Now, whether GameStop needs eBay is a different story. But GameStop is in trouble for two reasons:
1. Video games -- and therefore video game sales -- are moving to digital.
2. Physical stores are becoming a thing of the past for retail transactions.
eBay doesn't need GameStop's troubles.
^This. The crazy part is that in today’s PE-style system of things, the incentives…
- GameStop shareholders
- GameStop the company - e.g. employees
- eBay shareholders
- eBay the company - for example its employees
…aren’t necessarily aligned.
If GAME buys EBAY - it’s an exit for the EBAY shareholders, which is easy for them to evaluate as it’s presumably a $ premium over the share price today. If GAME then runs the company into the ground trying to free up the cash to pay off the acquisition debt, as most leveraged buyouts do (especially where retail is involved), that’s not a problem for those already-exited shareholders, though it is probably a problem for employees of either company.
If this deal does eventually go through, then it might be a good time for someone to start working on a competitor to take over the online auction space.
I could see it potentially be something like the Walmart pickup service? Last mile delivery is pretty expensive, so conceivably they could offer faster and/or cheaper shipping if you picked it up at a physical store.
I don't know. I don't think this acquisition would be a good idea.
TD didn't commit to $20B their letter only says they're "highly confident" they could raise that much. Very important distinction between the two.
>> whose current existence appears to be due to a weird short squeeze anomaly, is not a sustainable business.
I remember working in a CD Warehouse in the early aughts. Our store was next door to a Game Stop. The woman who worked at the Game Stop would come over and chat music with me when her store was slow. We used to joke about how both of our industries are seemingly dying a slow death. Console and game prices were going through the roof at the time. Compact Discs were being replaced by downloadable music. A few months before I quit, we finally started reselling DVD's to buoy the CD reselling part of the store.
As it turns out, the gaming industry outlasted the CD reselling business by quite a bit. lol
Gamestop turning into an eBay storefront makes a lot of sense to me and this seemed to be a very rational step to take when the short squeeze anomaly left them with billions in the bank and a business model that no longer makes very much sense with physical game sales being eaten by digital-only sales along with the potential decline of the console.
They already have the position of used buying and sales, extending that into in store receiving and listing of items on eBay makes sense. eBay being in decline as well.
>K-Mart buying Sears ruined that company
Both were quite dead by the time that happened.
I've yet to see a convincing vision of what an eBay physical store looks like that doesn't kind of boil down to a UPS store. The vast majority of their business comes from 3rd party listings and the only real stock they have and sell are in the eBay refurbished line. I'm really not convinced of what a successful eBay store would even be there for.
I've seen some say for authentication but staffing employees able to perform that authentication at even a fraction of existing GameStop stores would be extremely expensive (unless it's terrible authentication) so it again devolves to basically being a UPS store but for eBay shipping items out to be authenticated. Similar to what GameStop does with Pokemon cards and PSA grading except you can't really slab a Rolex or handbag so the authentication is only good so long as the good remains in the hands of the authenticator.
The only small service I think they could offer is a way for sellers to certify what's being shipped to avoid contests, but having that in every GameStop store is also very expensive for a cost they currently just shift onto sellers by siding with the customer. eBay could easily implement that if they wanted by partnering with UPS stores or a program where sellers video the packing or something.
I think you’re right about Kmart/Sears, though the interesting thing was that Lampert was correct that Sears had a great deal of real estate which had tremendous value. If someone skilled at retail had bought it, they could have used the money from selling some of that, to fix the business. Of course, Lampert was only skilled at finance and RE and very obviously just planned to gently wind down the business while selling off its assets, which is much less risky to do than fixing it - and may have yielded better financial results anyway.
That’s why the popular perception is that the Kmart transaction and Lampert killed it, even though their lot had really been cast 15+ years before, when they stopped innovating, and really stopped investing in their stores completely, without getting serious about e-commerce either. That poisoned their brand, which made it really hard to imagine turning it around.
> They already have the position of used buying and sales, extending that into in store receiving and listing of items on eBay makes sense.
Why do they need to buy eBay to do that?
I guess it comes to management.
I agree that if GameStop were basically rebranded as eBay brick and mortar stores, that might work. I guess I just feel like if it were GameStop itself that were managing it then it would be unlikely to actually work.
It's not like digital storefronts are new; I think GameStop should have been pivoting the moment that Steam started getting traction.
Im pretty sure thats what the CEO pitched.
They’re only 22 years behind
You guys might not have seen the recent interviews (last week) with gamestop CEO Ryan Cohen. Gamestop has already pivoted, game and console sales are cyclical and hard to base a business upon. They have leaned hard into collectables as a way to expand their business and retail model.
I am unsure how a Gamestop/eBay storefront would do. Physical manifestations of "eBay stores" have existed in the past and none of them did very well long term.
Dunno how gamestop’s logistics works but they could leverage the existing shops as dropoff points for sellers and offer a pickup point option to bypass the postal system. eBay sellers are at a disadvantage vs Amazon warehouse sellers when it comes to shipping costs.
At least my shipping broker in Canada uses small retail stores as dropoff points and then has a network of gig courier delivery companies they send stuff to for last mile delivery. Saves a lot on shipping costs.
I’ve noticed they don’t really integrate with gig couriers for last mile US shipments, just a few consolidators for mid-mile (eg: UPS Mail Innovations that uses USPS for last mile)
Might further delay delivery times but I use eBay to save some dollars in exchange for delayed gratification.
I don’t know about everybody else but I both sell and buy on eBay items that are more niche but not totally bespoke like on Etsy (e.g. photography equipment or specific hats).
Which means an eBay store would never make sense for my type of buyer or seller because I would just go to one of the many other existing entrenched retailers.
I know eBay pushes hard for regular retail but ultimately I see it as a marketplace for less fungible items and that’s what it excels at. Regular retail for regular items is easier because the user experience is always standard.
GameStop is trying to sit in the middle and trying to move product that is a little more fungible (previously used games and now more trading cards and collectibles) but I just don’t know how big of a market it is when you have to factor brick and mortar upkeep. I don’t want them to take down eBay in an experiment.
>I am unsure how a Gamestop/eBay storefront would do. Physical manifestations of "eBay stores" have existed in the past and none of them did very well long term.
A key here I think is the easy gradual transition here because Gamestop already has the used games business they could slowly integrate that into listing used games on eBay that were received at stores and then add related categories step by step with collectables and consumer electronics. There'd also be options of ebay items delivered to store which increases store traffic and doesn't involve giving strangers on the internet your home address, and there might be opportunities there to enter logistics and lower delivery costs for people.
They still don’t have anywhere close to buying eBay.
Please see: Leveraged Buy Out.
For the benefit of all the people on this thread not understanding what the proposal is for the acqusition: "A leveraged buyout (LBO) is the acquisition of a company (typically by a private equity firm) using a significant amount of borrowed money (debt) to meet the purchase price, often 60% to 90% of the total cost. The target company’s assets are used as collateral for the loans, which are repaid using the company's future cash flows."
Everybody understands the proposal. They also understand that an offer of $20 billion loan + $7.5b cash in hand + stock in Gamestop valued by the market at $11b = $37.5b, which is < $55b, a discrepancy Cohen has not been able to account for. Ebay also understands that leveraged buy-outs are a death sentence, and that saddling its operations with $20b of debt in exchange for gaining a dead business like Gamestop would eventually kill it.
Also when you count that 7.5B cash on hand as part of the deal to me that's to some extent double counting to include it and the current market value of all of GME's stock. At least part of the stock's value comes from the existence of the cash so it's not wholly separate from the value of the stock.
The context this comment misses is Gamestop's secret weapon is their CEO Ryan Cohen who has been sitting around the hoop trying to figure out how to leverage Gamestop's fundraising capabilities to do something big
Couple of highlights on Ryan
- Built and sold Chewy from a startup to the largest ecomm acq of all time - Became #1 individual shareholder of Apple early on - Bought a 10% share of Gamespot in 2020 becoming largest personal shareholder - Took over as CEO after being a proactive board member, works for no salary
https://en.wikipedia.org/wiki/Ryan_Cohen
You should also mention that Cohen never managed to turn Chewy into a profitable business before selling it off.
Similarly, his strategic initiatives at Gamestop have all been failure (e-commerce push, NFTs, digital games platform, crypto investments, ...). The only thing that has worked is aggressively cutting costs, mainly by shutting down stores, which was a plan that had already been proposed by BCG before Cohen came onboard.
Basically, he has done nothing except for taking credit for a plan that was already in motion and repeatedly diluting shareholders to raise funds that have been sitting in T-Bills ever since. There is no indication whatsoever that this guy is some kind of business genius who would be able to run Ebay better than the current management - quite the opposite actually.
Wasn’t there something where his comp package mandated 50b in market cap?
Ahh. 100b https://investor.gamestop.com/news-releases/news-details/202...
He gets money every $10B of market cap anyways so even if it never grows this acquisition makes RC money.
> works for no salary
Working for no salary is almost never charitable and is almost always just part of a larger tax avoidance scheme.
Yeah I've never thought that that was the win that people seem to think it is. When you're that high up in the company, you have so much stock that you can pretty easily get loans against for however much you need, and write off the interest in the process.
They have to trot it out because otherwise there's not much else to pimp about Cohen as CEO and this attempted deal seems much more oriented to juice the total market value of GME to more easily meet the criteria for his recent pay package rather than a great idea for either company on it's own.
Doesn't matter as long as incentives are aligned. As a major stockholder and active advocate, he is already vested in success.
I'm not sure that the incentives actually are aligned. It seems like the incentives are to think short term and do sketchy shit to pump the stock.
I wish we would normalize people just running a business well and taking a damned salary.
You want to normalize low ambitions?
Doing a good job without it benefiting your personally.
"Running a business well" is now "low ambitions"?
Seems like a no brainer for people who want to go into a physical store without dealing with the hassle of waiting for the item to sell along with packaging and shipping.
ebay started attempting consignment more than ten years ago, but I think lately they only do it for luxury items. Which makes sense to me as a lot of people would just send in junk. https://pages.ebay.com/ebay-consignment/
Who wants to go to a physical store in 2026?
I do. Its great. You can walk around, look at things, talk to people, maybe buy something you wouldn't based on cover art or whatever. You get to drive a little, listen to some music.
Legitimately. Especially if it's a book shop.
Book shops are actually one of the few physical stores I still want to visit
I could maybe see this argument in 2018 or something
In 2026? Online shopping is full of low quality knockoff crap, with deveptive listings that are trying to trick you. Yes, I absolutely prefer physical stores again. In fact I've pretty much stopped online shopping altogether again
Okay, but Gamestop has very little of the benefits of physical stores, you're not going to inspect the quality of the games without loading it into your machine, and the major auxiliary purchase available for sale is a bunch of Funko Pops.
Me. I love the experience of getting out of the house. Also, online shopping is an extortionist on certain items. There are so many things that are 1/4 the price in a physical store than they are online due to shipping and logistics.
> Cohen last week offered $125 a share — consisting of 50% cash and 50% GameStop stock
So he's basically looking to launder his freshly minted meme stonks into legitimate real company stock. It's shocking they don't want it.
GameStop forgot to pivot to AI-first before making the offer.
alternative link on archive.org using htmlpipe[0] :https://web.archive.org/web/20260512164713/http://serjaimela...
Kind reminder to donate to archive.org: https://archive.org/donate
This helps because google captcha now sometimes require android phone qr code scanning etc. so I have uploaded the article on archive.org
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(I was gonna add it as a comment below bstsb but it seems to have been detached now so can't comment on it)
Well if you’ve seen the CNBC interview with the GameStop CEO he couldn’t answer basic questions about the deal so the outcome here isn’t surprising.
The interview was so bad the first time I saw it I thought it was some sort of satire bit. No, it was real and the commentators were literally speechless.
Tbh, if you can convince someone to take your relatively worthless pieces of paper in exchange for your valuable asset, then your worthless pieces of paper are no longer worthless.
Not much different than me having a bit of cash and putting 5% or 20% down to buy a home or car: now I’m a big asset and debt holder and you got some pieces of paper with dead presidents on it.
That was the hard part of the deal: will (enough) eBay shareholders want to be GameStop shareholders.
eBay shareholders would be right to be upset with eBay management. eBay has treaded water in a niche of online shopping while online shopping has grown massively. Whether GameStop is their solution or not, Iunno.
Just saw this for the first time. How someone can show up on a major network like this is beyond my understanding. Literally couldn't answer where the money would come from.
Dilated pupils. Delayed responses. Inattentive gaze. Speaking nonsense.
Drugs might explain many things.
He works his ass off. You obviously can't spot a bear trap :-) The lower range of $GME the past couple of years is nowhere near where the shorts are going to have to buy-in.
He didn't want to say the "D" word.
(Dilute the religious share holders to have them finance the deal)
Guys, we have a web for a reason. For links!
https://www.youtube.com/watch?v=Bmj2PaxX24E
It was a clown-show interview, but also likely on purpose from the CEO. The CEO does not like CNBC (their history of reporting on GME as a meme stock), and his schtick plays to retail investors. The problem is to get a deal like this done he needs to convince non-retail investors to come along. He also clearly didn't want to say 'dilution' when pressed about where the rest of the stock would come from.
CNBC hard fumbled in that they didn't even understand what the offer was. The CEO put that on full display and embarrassed the hosts basic knowledge of finance. It was hard to watch.
Can you explain your thought process here? Perhaps we're "embarrassing my basic knowledge of finance", but I wasn't able to follow his math either.
The math doesn't actually math. Even if you're not discounting the cash on hand from GME's value all of GME's market value, plus their cash on hand, plus the "highly confident" $20B still doesn't add up to the take over value in Cohen's letter.
I have absolutely no clue how you could watch the interview and come away with this conclusion. The purpose of an interview is to ask Socratic questions to allow the guest to talk about something of which they have intimate knowledge.
The CEO made it seem like he himself didn't know how the math for the offer worked, and even when presented multiple opportunities to correct that impression, he made no attempt to convince anyone otherwise.
I imagine the actual reason why Cohen didn’t answer the question is that he would have to admit that if the combined entity issued enough shares to pay for the acquisition, it would substantially dilute existing shareholders.
I agree, but he had to know he'd be asked the question, right? And he had to know that staring blankly and mumbling about the offer being on the website wouldn't suffice as an explanation. It's just mind-boggling behavior from the CEO of a public company.
Yes you do. He came away with that conclusion because he entered with that conclusion. When you're already radicalized to a specific outcome, you lose the ability to perform the process of elimination.
> I have absolutely no clue how you could watch the interview and come away with this conclusion.
The reason is pretty apparent. They are bagholders. People like this show up in every thread about Gamestop boasting about how amazing Cohen is in a weirdly personal manner, and have a very fantastical view of how things are going to go -- because their investment depends on it, and they built a literal cult around the idea that GME would make them rich, which necessitates viewing reality a little differently from the rest of us.
Here's the biggest reason why -
GameStop CEO Ryan Cohen gets a performance pay if the market cap goes up:
> The total award consists of stock options to purchase 171,537,327 shares of the Company's Class A common stock at a price of $20.66 per share.
Swallowing a new company, even if it takes on debt, can bump this up.eBay market cap is $48B.
https://investor.gamestop.com/news-releases/news-details/202...
There's a section of his pay package that says:
Matt Levine's recent opinion piece for Bloomberg ("GameStop Doesn’t Have Enough Stock", https://archive.ph/3h8wf) goes into a bit more detail about it, including why such an acquisition might still help him get there even if it doesn't instantly get him halfway.There's nothing in Ryan Cohen's career that instills confidence to me. He seems like another tech leader that just got lucky at selling their company (which was only unprofitable for the majority of its lifetime until very very recently) during an economic era that is unlikely to return in any of our lifetimes (or our children's lifetimes).
I'm pretty sure this was just a stunt to manipulate both stock prices for some short term play.
It’s been a lot of (unintentional) free advertising for eBay and they’re not even doing a good job of embracing that.
Probably more people than ever have thought of starting a shopping search on eBay than ever (outside pandemic shortages).
Any reasonable person could see this was a ridiculous clown show, put on by the ridiculous clown show meme stock company.
This movie isn't over yet. We'll have to wait and see if GameStop goes full 80's on them with a hostile takeover attempt.
GME had already acquired ~5% of Ebay shares ahead of the offer.
Someone call T. Boone Pickens and the Greenwash Boys!
Meanwhile they're now working on getting approval to dilute out another billion or so shares:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326380/0...
"We are asking our stockholders to approve an amendment to our Third Amended and Restated Certificate of Incorporation, as amended by the Certificate of Amendment dated June 2, 2022 (the “Existing Charter”), to increase the number of authorized shares of our common stock to 2,500,000,000, and correspondingly increase the number of authorized shares of all classes of our stock to 2,505,000,000 for the reasons discussed below. Our Existing Charter currently authorizes the issuance of 1,000,000,000 shares of common stock and 5,000,000 shares of preferred stock."
Cocaine (or whatever their CEO is on) doesn't buy itself.
Edit: Also, the fact that company leadership can get away with this kind of thing, fleecing retail investors for millions/billions of dollars, and face no consequences is...I dunno. I guess it's just normal now. Lawlessness, bribery, favors to the right politicians, lying without hesitation or remorse. People in media clutching their pearls over whatever the Gen Z kids are getting up to on TikTok while this shit is going on is just the icing on the cake.
I mean they make a good point -- ebay isn't a serious company anymore. It really needs someone with a vision to rebuild it. That its limping along and executives are essentially bleeding a previously valuable internet asset dry is kind of sad.
Neither is GameStop
Thats not my point. Shinning a light on what eBay could be vs what it is.
The sad part is the offer primarily focussed on how eBay can cut costs when a lot of that spending is probably accretive.
eBay’s biggest issue is their declining online shopping marketshare. They’ve gone from owning nearly the entire market to just losing it.
They're doing a terrible job of preventing scams. Right now there are hundreds of listings for GPUs at too-good-to-be-true prices from sellers with 0 feedback or, worse, from old accounts with positive feedback that have obviously been taken over by scammers (all the feedback is from years ago and about unrelated products). Trust is what eBay brings to the table, when they cede that to scammers, they stop being useful...I can get scammed on TikTok any time I want.
Show me any platform that successfully prevented scam.
"Half stock, half cash": https://www.youtube.com/watch?v=NxD-KGsvPI0
(I couldn't believe myself at first seeing things like these happening and this clip in particular, how does one get millions of dollars for such an disastrously wild interview to me feels quite off to me)
The fact that a guy like this can rise to the level of CEO making millions pretty much sums up everything wrong with the world. I don't think I would trust that guy to make a sandwich.
I would admit that when I had first heard the news (from hackernews) and read its comments, people gave multiple examples and convuluted examples on how this all makes sense and the financial aspects. I was left feeling impressed that perhaps gamestop might've been thinking something new.
Then I watched the video.
> I would trust that guy to make a sandwich.
Don't worry, we are just trusting him with around a measly 11 billion dollars.
This isn't even the worst part by the way, somehow the worst part to me feels like there are people who watched that interview and then somehow got even more convinced within this person/gamestop and publicly glaze him.
To them, I have a question like, are we watching the same interview? How can anyone watch that interview and then consider it in any way positively or anything like that, like huh, have we watched the same interview?
Perhaps some of us at first (like within that HN discussion) were/are trying to justify as if it is some massive brain effort by gamestop or anything and its a 5d chess move ,but to me, this interview showed me what the reality is actually.
This is because the community around Gamestop is radicalized by the exact same grievance culture behind the MAGA movement. It even started conveniently in January of 2021, at a point of MAGA's seeming obsolescence. The adherents of this movement have already accepted the final result as guaranteed, and literally every piece of news the world over gets interpreted through the lens of this eventuality that Gamestock's stock price will explode, making them all millionaires and billionaires. Just like MAGA, the community is full of people whose main role is to delegitimize negative news, and reframe it all as instead proof that the mother of all short squeezes is imminent. Today is the perfect day to see this playing out on their subreddits.
A marketing stunt just like when (and I'm reluctant to use their name) Perplexity said it would buy Chrome.
Polarize the people, it doesn't matter if they shout your name.