Anyone ever think about what the value of a share of a new company formed by merging GME + eBay could potentially be once the new stock is listed and begins to trade..?
I suppose you could take the stock price of each today, and just add them together. The TSO for each separately is close enough for a thought experiment. GME TSO of 504.5M shares and eBay TSO of 445M shares.
It would essentially be the same as adding the two Market Cap values assuming nothing changes in the valuation, which imo, is not going to happen, except in the upward direction. That new valuation will be going up, the RC running the show like a family business. Not flying to Cannes on the shareholder’s dime on the shareholder’s corporate jet.
My thought experiment based on yesterday’s closing price would be the worst case scenario, imo. $133.29 per share of the NewCo.
RC running both companies together would be a heck of a lot higher valuation than that. Almost immediately too.
There is your floor price for a newly issued combined company’s stock price.
Final thought. Take that times the number of your cancelled shares. Those are some large numbers.
I still think RC has this deal wrapped up. BlackRock and Vanguard should be able to see that too. They are the two largest holders in each company, and I would think they would see the trapped potential inside eBay’s balance sheet.
GME’s valuation today, imo, is being artificially suppressed.
Good thoughts. PS, you pay tax if you sell. Another reason to never sell. I’m a buy, borrow, die, kind of dog. Hopefully a motto for my pups too. It is the reason Buffett never sold a share of Berkshire Hathaway, Elon Musk the same. RC is, imo, setting up his legacy wealth machine in a similar way. 🐶