Subject: Re: Pricing the impossible
GameStop’s total market value is in the neighborhood of just $11 billion, so it isn’t clear how it would be able to hand over $28 billion of shares. Its share price would somehow have to multiply for this to work.
New class of stock arbitrarily valued at (say $250/share) for the deal--which is ONLY issued to eBay stock sellers for the transaction (not a public issue stock). This happens all the time. Then it depends what the eBay stock holders decide. Do they sell? If yes, to whom? Open market or Game Stop or someone else? Or not sell? Short the stock? Short which stock? The existing eBay stock or Game Stop stock (expecting a flop)?