00:00The most important thing for him to do now is to convince lenders that that's the case,
00:06because who the heck knows where this money is going to come from. GameStop has $9 billion in
00:10cash. That's quite a bit short. They've said they have a high-confidence letter from TD Bank. I
00:16don't even know what that means. I think if I go on the used car lot, they're usually pretty
00:20confident they can get me financing. So there's some potential $20 billion offer there. And then
00:28a big question is, where's the rest of this money coming from? Are they counting on equity? And
00:32what is the confidence of eBay shareholders on that? It just sounds like it's going to be a heck
00:36of a sales pitch he's going to have to do to either find other sources of funding or convince
00:42shareholders that somehow this deal is worth that gap. Yeah. I mean, did we have any reason to
00:48believe that there was a potential tie-up, or that GameStop had such ambitions, or did this really
00:53come out of left field? I've covered eBay for years, and it surprised me. I've always thought
01:00eBay could certainly be an attractive target for some company, but GameStop never really rose. I
01:07never saw them as really being in gobbler mode. And to your point, yeah, there's a GameStop near me,
01:13and it's the place people kill time when they're waiting for their Subway sandwich to be made next
01:18store, you know? And so it's, yeah, I just, it was a surprise. Then are there legit potential
01:25synergies? Maybe. I mean, eBay's been focused on these core categories like luxury items, car parts,
01:32those sorts of things. I haven't really heard video games come up at all on their earnings calls.
01:36They do sell those things, and there is a used game market, and there are a lot of enthusiasts,
01:41and there are limited edition things which eBay can sell.
01:44Collectibles, right? Collectibles, exactly. And limited edition releases, you know? And a lot
01:48of times those things resurface on eBay. So there's something there. I just don't know if
01:53GameStop is the one to pull it off, or if they're going to be able to find the money to
01:57do it.
01:58Right. GameStop offering $125 a share for eBay. That's a 20% premium to eBay's last close on Friday.
02:06The stock this morning up about 5% and trading at just below $110. There's a pretty big gap there.
02:13So what does that tell you, Spencer?
02:15Yeah, there's definitely a lot of skepticism in the market, and that's what I heard from
02:21an analyst this morning. A long-time eBay shareholder was just questioning if there's
02:25some kind of pump and dump thing. And that's going to be the big question, is it sustainable?
02:32You know, even if they find the money to buy eBay and get some lenders to loan them money
02:40to buy eBay, how heavy of a debt burden is eBay going to carry on the other side of this,
02:47and how sustainable will it be?
02:49Yeah.
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