Ryan Cohen is playing chess and until you realize this nothing will make sense.
The $EBAY proposal was the spearhead. Half cash, half stock. Some might even say dilution.
To block the acquisition, $GME needs to be priced low - requiring more stock to finance the deal.
Enter… the buyback + Q1 earnings announcement.
This is the curveball.
To prevent the buybacks, price must be high. To prevent the $EBAY acquisition, price must be low.
This pits two sides of the trade against each other.
In the end, Ryan and shareholders are rewarded - regardless of the outcome.
Anyways, whats an exit strategy?
Stock options only have intrinsic value when the stock price exceeds the exercise price on a per-share basis. If the stock price is below the exercise price, the option has no intrinsic value. The more the stock price rises above the exercise price, the greater the option value.
GameStop Announces Dividend of Warrants to Shareholders:
- 1 warrant for every 10 shares of $GME common stock held
- exercise price of $32.00
- expiration date 10/30/26
- warrants are freely tradable on NYSE: GME WS
Full details below:
https://t.co/4A4eHJ75jo
@madeinamerica I think you need to be extremely careful on how you attempt to create divisions that might not even be there. I’m willing to bet if I spoke with you long enough we could find things that you strongly agree with that are not aligned your political party’s agenda, same for anyone.
😼🔮💵📈 $GME
“Now it's all about the transformation and that cash pile is growing, it seems to be growing, will they raise more money? We'll see, I don't know - I see it. But...if people, if you just change one factor and that's that you don't think Ryan Cohen is a doofus, alright? If you don't think he's a doofus and he's not a fool, if you don't think that - and all of a sudden, suddenly they're sitting on billions of dollars in cash, and you actually think not only is he not a doofus but - he's extremely talented in that he has the capability to turn this around, even if you don't agree with that, even if you don't believe it, that's fine, if you just pause for a moment and think about that - I think it really changes your mindset so that becomes the bet - that becomes the bet.”