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BREAKING: The House has passed a War Powers Resolution aimed at reining in Donald Trump’s war in Iran in a 215-208 vote.
Four Republicans broke with Trump and voted with Democrats: Thomas Massie, Warren Davidson, Tom Barrett, and Brian Fitzpatrick.
Valuation summary for the hypothetical $GME + $EBAY combined company (using $4.871B pro forma net income shown in image below made after release of GaemStop Q1 earnings yesterday - previous valuation range I got for the combined company was $67-133B).
The "Internet Retail" category currently averages ~28x trailing twelve-month (TTM) P/E, while e-commerce companies as a group average ~23x TTM. Forward P/Es tend to run slightly lower (for example, AMZN is ~29–31x, and EBAY is currently ~17–18x), but trailing P/E remains the most commonly referenced “current” benchmark for peer comps in the market. Applying these multiples:
Low-end (14x P/E) gives us a $68B market cap, and the high-end (40x P/E) give us $195B market cap for the combined company.
Using a narrower, more representative range of 20x–35x (of current e-comm and marketplace peers), that implies a $97-170B market cap. This is much higher than the implied valuation I got when I first did this calculation in early May before Q1 results were released for GameStop (again, previous valuation range was $67-133B). There is no way that a bid like this with a cash payout and immediate increased earnings and valuation would fail if taken directly to eBay shareholders. Let's see what happens.
@magsonthemoon@merlinscapital That was probably the weirdest looking and sounding fight ever. Bessent reminds me of a character Will Ferrell would play.