Rachel Warren

So often these massive IPOs act as liquidity vacuums, if you will.

So let's say you have a dominant player like OpenAI,

that hits the market.

A lot of times you'll be seeing institutional managers might sell off their smaller second tier AI or software stocks to clear portfolio space for that new industry leader.

So you can sometimes see that sector wide rotation and that can put some of our holdings under temporary selling pressure, just as we kind of see those broader movements in the market.

But, you know, it doesn't change long term fundamentals for quality businesses that are already performing.

So just something to bear in mind as you watch the sector react with these IPOs coming up.

Yeah, I mean, there's definitely historical precedent for this.

I mean, you have a famous example back in the 1980s, right, with Capital Cities.

They're a relatively small media company.

They acquired ABC.

That was a company that was nearly four times its size at the time.

And of course, back then, that deal was very much financed by famous investor Warren Buffett, Oracle of Omaha himself.

He provided about $500 million in exchange for up to a 25% share in the combined company.

And that deal was one of many, I think, that proved that you could have a smaller, more aggressive firm swallow a corporate giant if they had the right financial backing.

Now, you talk about this GameStop and eBay proposed deal to fund the cash portion of this deal.

Ryan Cohen, he secured a $20 billion debt financing commitment from TD Securities.

That's the investment banking arm of TD Bank.

And the idea is this would act as a bridge between GameStop's existing cash pile and the total offer.

It's a risky maneuver.