GameStopped

Soon...

Don’t be surprised if Ryan shows up with $15-20B from sovereign wealth funds via convertibles at a $75-100/share ($33.6-50B market cap) *post-acquisition valuation* for $GME and the combined entity. That’s actually a reasonable valuation for the combined entity. Also, don’t forget that the 50% stock consideration covers far more ground than a simple ATM raise: they can use the full armory from the standing S-3 and issue straight common, preferred, convertibles, warrants, rights, or other equity-linked paper. Sovereign wealth funds and private investors were explicitly named in last night’s deal paperwork, so this is not just speculation. The $33.6-50B valuation for $GME is basic math. The deal paperwork shows combined diluted EPS jumping from $4.26 to $7.79 in year one on cost cuts alone. Multiply $7.79 against eBay’s ~454M diluted shares and you get roughly $3.54B in combined net income. That’s before GameStop’s own improving earnings: FY2025 came in at $418M net income, with the full-year trajectory pointing to continued improvement as SG&A reductions compound and revenue growth kicks in with highly improved margins. A 9.5-14x P/E on $3.54B in combined earnings power lands squarely in that range. That multiple is conservative given eBay standalone currently trades north of 23x. A restructured, cash-generative marketplace with 1,600 physical locations, a 0% cost of debt, and a CEO who took a company from -$381M to +$418M in net income commands at least a certain premium on top of that in my opinion. When Elon Musk took Twitter private using a consortium that included the Saudi Public Investment Fund and Qatari sovereign wealth alongside private co-investors. He showed the market that a high-profile platform acquisition could be financed through private capital at scale. Ryan Cohen is probably going to run a similar, creative (S-3) play with better fundamentals.