TD bank is never going to give $20b for this transaction, they spelled it out quite clearly in their HC letter. It was a publicity stunt by GME.
276 karma · joined April 7, 2019
This is a market that is a fraction of the size of the game market, their pivot is into a smaller business?
Well, we should point out that Gamestop hasn't grown their own business - they've lost 50% of revenue since 2020. Why would anyone trust that management to "turn around" another business?
You are conflating companies that make a lot of cash (and therefore can afford debt service) to a company that has limited cash flow, but has a large pile of cash.
The shareholders would be best served by a special dividend of the cash. Management has shown zero ability to grow a business.
When the revenue goes to zero, how much of that pie will be profit? The industry they're in is dying quite quickly, and there are no other revenue centers. The high margin business they had was reselling physical game media.
This is the same story as other dead physical media, CD's, DVDs, etc. It's going to continue to decline, and GME has no pipeline of future revenue. They continue to close stores and shrink.
Also, yikes https://xcancel.com/sshxbt/status/2051311101279887652
Not growing revenue would be one thing, they're shedding revenue at pace - 50% decline since 2020.
> Shareholders seem to agree
First, it's a meme stock. The market can remain irrational for long periods. Another way to analyze it - almost all of the market cap of ~$10b is the $9b in cash. The shareholder pricing tells you they value the business at it's cash assets.
Gamestop's business of physically selling video games, consoles, etc is a dying/dead industry. Nothing can change the trajectory of the market that is almost completely disappeared.
It's a Blockbuster or Tower Records, a dead business running on fumes and memestock valuation.
https://investor.gamestop.com/news-releases/news-details/202...
That total revenue also declined 5% YoY
Gamestop closed 2,400 stores from 2020 to present, and operates just 2,200 stores currently. They'll continue to close stores as their revenue continues to shrink (down 60% in the last decade).
>used gaming inventory
physical used game inventory is a fraction of what it was a decade ago, and continues to shrink as a category, digital sales continue to climb and exclude Gamestop
Likewise, the company's revenue has declined ~60% in the last ten years, and declined 5% from 2024 to 2025. The business became marginally profitable when they shrank the business by reducing operating expenses and produced a small profit.
There are no significant avenues for growth in their current business model, revenue will continue to decline, as it has for the last ten years because the core model of re-selling used games continues to shrink. As revenue decline continues, they'll run out of people to lay off and stores to close, there will be no profit because the revenue is too small, and the company will BK.
There is no turn around, the company continues a death spiral.
Must be why it's revenue is declining to it's historic 2006 level, because it's just too busy.
net sales 2016 $8.6b, 2025 $3.5b and still in decline
The revenue for Gamestop continues to decline, even if they are "profitable". The annual decrease in revenue continues. It's a dying business, it hasn't been turned around. The most charitable comment you can make about the company is that they've shrunk the business to align with their revenue decline.
So far he's failed to improve Gamestop's core business, which is still in decline, even with the memestock cash gusher.
No one goes into Gamestop anymore, and they won't start because of eBay.
It's not an answer to the question of a turnaround, and therefore low quality information? How much you have in assets does not correlate with the ongoing success of the business. Examining the day to day business of Gamestop and excluding the memestock shenanigans leaves a very bad business.
The core business has declining revenue - net sales 2016 $8.6b, 2025 $3.5b and still in decline. Cash flow from operations also continues to shrink.
Store footprint has shrunk.
The underlying business stinks, even if they made a ton of money selling stock, they haven't done anything significant to halt the spiral.
To the poster below asking if I'm drunk. Please provide some sort of revenue citation to 18x? https://stockanalysis.com/stocks/gme/revenue/
It's a very genuine question for how an attorney deals with these businesses? There are countless examples of startups breaking the law at mass scale (Uber, etc) and getting away with it. Sorry that asking difficult questions is wasting "community space". Your own profile cites conflict as essential, is asking difficult questions not part of that?
Part of the guidelines you asked me to review is "Assume good faith." Did you assume good faith from my comment?
One of the more recent discussions here was about Medvi, which described many illegal/unethical business practices. https://www.nytimes.com/2026/04/02/technology/ai-billion-dol...
Other examples include Airbnb building a bot poaching listings from Craigslist, Stripe not developing appropriate internal rules to enable fraud and drug transactions, pretty much all crypto exchanges and KYC, etc.
Obviously, payment processors like Stripe do not spring into existence fully formed with mature controls. My question relates partially to how attorneys in this domain handle the risks associated with undeveloped compliance, compliance failures, as well as business models that are diametrically opposing the law.
There is an area that many startups believe is "grey" where they operate outside of legal norms, whether it's to enable growth, lack of appropriate risk controls, etc.
Here, startups may knowingly, or unknowingly break the law related to immigration in order to further their business. That's what my question relates to.
Maybe they should have spent that on the facebookphone
$100+ billion in R&D and it's not comparable... hmm
it absolutely is a next word predictor
is it? we're currently scaled on data input and LLMs in general, the only thing making them advance at all right now is adding processing power
Has any company ever buried such a large acquisition in its filings without disclosing the acquired company prior? I cannot recall any off the top of my head.