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."

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applfanboysbgon 5 hours ago | parent | next [-]

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.

	▲	rtkwe 5 hours ago \| parent [-]
		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.

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yalogin an hour ago | parent | prev | next [-]

Ha yes of course, but th EU still have to show they can get the loan. They were unable to show that.

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rtkwe 3 hours ago | parent | prev [-]

The $20B letter from TB is the leveraged part of the buy out and the math still doesn't add up even if you for some reason allow GME to dispose of all their cash in the deal without taking a hit to their stock price.