Comment by andruby
5 hours ago
A company doesn't need $55bn to buy a $55bn company. They can issue new GME shares and exchange $EBAY for $GME. These are sometimes called "stock-for-stock" transactions
5 hours ago
A company doesn't need $55bn to buy a $55bn company. They can issue new GME shares and exchange $EBAY for $GME. These are sometimes called "stock-for-stock" transactions
Except a sudden dilution usually tanks the stock by the exact % its diluting
So GME dilutes by 20%, stock price immediately goes down by 20%. its not some infinite money hack
Except in this case, the company also now owns EBay with a market cap of around $44B before the takeover bid was announced.
I don’t think GP was claiming it was an infinite money hack at all.