Cape Dutch Capital

Allow me to translate this letter from eBay for those who don’t speak legalese: Ryan, We got your unsolicited offer to buy eBay for $125/share (half cash, half stock) supported by your 5% economic interest in eBay. Our board, backed by the usual crew of bankers and lawyers who get paid either way, “thoroughly reviewed” it. We’re rejecting it. Not because the math doesn’t work. Not because the highly confident letter from TD Securities for up to $20B on top of your $9B+ cash pile is fake. None of that. We’re rejecting it because your entire approach to running a company is an existential threat to how we like to operate here. Here are the reasons we feel this way, and the things we considered before paying consultants to write this: 1) We’d rather keep milking eBay as a “standalone” cash cow than let you turn it into something bigger and better. 2) Sure, you’ve got real financing lined up and you “know people” with deep pockets, but we’re going to call it “uncertain” anyway so we don’t have to engage. 3) Your plan would actually force real long-term growth and profitability changes we’d rather not be held accountable for. 4) The debt we pretended you can’t even obtain, the operational integration and focus on seller satisfaction, and most importantly, putting someone like you in charge of the combined entity all sound like a nightmare for our current leadership structure because all of us would have zero job security. 5) The valuation math only looks bad if you ignore the 46% premium you’re offering our shareholders and the upside from fixing eBay the way you fixed GameStop, which we are choosing to do and hoping nobody notices. 6) And I hope we buried the lede far enough here: Your governance and executive incentives are completely incompatible with ours. You and your board take zero cash, no salary, no bonuses, no golden parachutes. You buy shares with your own money and only get paid if shareholders win. We, on the other hand, like our nice, reliable annual payouts regardless of whether the stock is flat or the company is just coasting. We’re not about to hand over our golden goose to a guy who eats only what he kills. Look, eBay is “strong” and “resilient” in the way every entrenched public company says it is while handing out eight-figure checks and perks to the C-suite. We’ve done the usual incremental stuff: tweaked the marketplace a bit, returned some capital, and we’d like to keep doing that without any cowboy from GameStop coming in and demanding actual skin-in-the-game accountability. Can you just leave us alone? Our team remains focused on protecting the current regime and delivering “value”… mostly to ourselves and our consultants. Thanks, but no thanks, Paul S. Pressler
Chairman of the Board, eBay
(And proud beneficiary of the status quo)

I just had an epiphany.. “Highly confident letter from TD bank” TD bank = Teddy. Bank.

Wow this U.S. vs. eBay lawsuit from 2023 was just uncovered and makes $GME's case for acquisition even stronger. The details of this are one of the most bizarre things I've ever read: Between August 5 and August 23, 2019, eBay’s former Senior Director of Safety and Security, Jim Baugh, and six other members of the security team executed a harassment campaign intended to intimidate the victims, who spoke negatively of eBay online. The campaign included disturbing deliveries: sending anonymous packages to the victims' home, including a book on surviving the death of a spouse, a bloody pig mask, a fetal pig, a funeral wreath, and live insects.

That’s the key point from Ryan Cohen’s interview. He explicitly said equity is going to be rolled into both GameStop and eBay shareholders. That rules out a standard acquisition. This is Teddy. There’s really no other clean way to interpret that kind of language. DK-Butterfly is the obvious vehicle, use it as the holdco, preserve the NOLs, and run a reverse merger that pulls both GameStop and eBay into the same umbrella. End result is one combined company, Teddy. From there, the equity split basically falls into place: 51% to legacy BBBYQ (required) ~19.4% GameStop (40% of the remaining 49%) ~29.4% eBay (60% of the remainder) Consolidation. Everyone rolls equity into the same structure and comes out owning pieces of the new combined entity.