Toys R Us Tin-Foil 🦒🧸🤖
For those that no longer believe in coincidences, below are a bunch of links formed by those in the X community about plans for the toy retailer... 🧵 $TOYRF $TOY
Toys R Us Tin-Foil 🦒🧸🤖
For those that no longer believe in coincidences, below are a bunch of links formed by those in the X community about plans for the toy retailer... 🧵 $TOYRF $TOY
GameStop reports highest quarterly net income in company history of $389.6 million. Highest first quarter operating income in GameStop’s history of $143.3 million. Net sales grew 14% year-over-year, driven by collectibles. Cash, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset of $9.7 billion.
https://t.co/BAu3T6V9w4
@VladTheInflator Berskhire are on the wrong side of complex toxic derivatives. They can't get out quick enough from "Bank of America".
I wouldn't assume they are selling to prepare for a crash. They may also be selling to raise margin.
I know I said I wasn’t posting for a while, but this post got me thinking about how $GME could become an instant Berkshire through two sophisticated but hard to execute pieces of M&A activity.
Current Firepower
GameStop holds $9 billion in cash and has 552 million unissued shares available as deal currency. The company also has a shelf registration (S-3) in place, which enables additional debt financing for an LBO-style acquisition if needed.
PayPal Today
PayPal generated $33.2 billion in TTM revenue, $5.2 billion in net income, roughly $6 billion in operating income, and $6.4 billion in adjusted free cash flow. On top of that, PayPal holds $40.7 billion in customer funds, which functions as a low-cost *float* that generates spread income. Despite all of this, PayPal trades at just $37 billion market cap, which works out to roughly 7x free cash flow and 6x operating income. They have some really sleepy management. They own PayPal owns Venmo, Honey, Xoom, Zettle (iZettle), Hyperwallet, Paidy, Simility, Chargehound, PayPal Credit, and a 70% stake in GoPay - some of these assets are severely under utilized by the sleepy management team.
The Play
GameStop doesn’t need to acquire 100% of PayPal. A controlling stake between 51% and 70% would be enough. That level of ownership allows full consolidation of PayPal’s revenue, EBITDA, and cash flow, while governance can be structured through majority board seats or super-voting stock. A control acquisition (with premium) would create a $45 to $50 billion pro forma market cap for the combined entity, with a likely change in valuation multiple through category change. But maybe that wouldn’t be enough to command a 15-20x free cash flow valuation. Enter phase two.
Phase Two: eBay Merger
eBay now trades above PayPal’s market cap for the first time since the 2015 spinoff. The next move would be to use the post-acquisition equity as currency for a 1:1 stock-for-stock merger with eBay, structured so that GameStop and PayPal holders retain more than 50% voting control. This effectively re-verticalizes marketplace, payments, and wallet under one roof, reversing the 2015 separation but now under GameStop’s control architecture.
The Endgame
The result is a $100 billion+ combined platform generating roughly $10 billion in EBITDA, combining PayPal’s $6 billion operating income with eBay’s profit pool and deal synergies. eBay provides marketplace GMV, PayPal powers the payments, wallet, BNPL, and stablecoin infrastructure, and GameStop sits at the top controlling capital allocation and strategy. Just some food for thought.
To infinity and… straight to Toys"R"Us ⭐🚀
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Toy Story 5 arrives in theaters this June, and our NEW LeapFrog Lilypad Learning Pad is already becoming a fan favorite 👀
Shop now at Toys"R"Us, in-store and online at https://t.co/5U1ehLCvzH and https://t.co/GspHDXGPqh🛒✨.
@Noah221221 The question $GME folks need to ask is... WHY ? 🤔
Why would their single biggest asset (besides RC & cash) remain silent? Unless Buck is waiting for something...