GameStop rethinks eBay takeover
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Why is GameStop considering pulling its eBay takeover offer?
Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon. Today is Monday, August 10th, and I'm your host, Kim Kahn. Our top story so far. GameStop CEO Ryan Cohen is reportedly considering withdrawing his offer to acquire eBay and instead could propose a different deal, such as a partnership or joint venture. With GameStop shares down 28% since May, the company is looking at alternative ways to capitalize on its retail footprint alongside eBay's catalog of collectibles, Bloomberg reported.
How is GameStop planning to finance the eBay deal and why did Michael Burry sell his shares?
The deal could also include representation on eBay's board. GameStop is currently eBay's second-largest shareholder, with a 9.75% stake. In May, GameStop extended a $56 billion offer for the outstanding eBay stock, split 50% cash and 50% stock. To finance the deal, Cohen said he would tap GameStop's $9.4 billion cash and liquid investment war chest, along with a $10 billion line of credit from TD Securities. Despite Cohen's insistence the deal would be transformational for GameStop, Michael Burry sold his entire GME position soon after, saying Wall Street does indeed mistake debt for creativity and does so constantly.
What impact will higher component costs have on the upcoming iPhone 18 Pro price?
Among active stocks, the cost of Apple's 256-gig iPhone 18 Pro will be about 38% higher in Q3 than the comparable model launched in 2025 due to surging component costs, according to Trendforce Research. Meta CEO Mark Zuckerberg is unveiling a new open-source AI model called Muse Glimmer, a version of the company's most powerful model, Muse Spark. Soon we'll release the weights from USE Spark 1.2, our latest foundation model, Zuckerberg said, met as a strong supporter of open source. And Archer Aviation is soaring after saying it will acquire Boeing's Wisk Aero, SkyGrid, and InSitu subsidiaries. WISC is the only company to have designed, built, and flown six generations of electric vertical takeoff and landing aircraft.
SkyGrid has developed a ground-based aircraft agnostic air traffic management solution, while InSitu specializes in designing, developing, and manufacturing uncrewed aircraft systems.
Why is Archer Aviation acquiring Boeing’s Wisk Aero, SkyGrid, and InSitu subsidiaries?
In other news of note, a consortium that includes Amazon founder Jeff Bezos is reportedly closing in on a deal to buy a stake of about 30% in Liverpool FC. An announcement on the deal with the consortium, led by Amit Bhatia and including Bezos and Facebook co-founder Eduardo Severin, could have come as soon as this week, Sky News reported. The investment reportedly valued Liverpool at $6 billion, making it one of the richest deals in sports history. My commitment to unbiased news prevents me from commenting as a Man United supporter. And in the Wall Street research corner, the S&P 500's dividend yield has fallen to a record low of 1.04%, as stock prices have risen faster than dividend payments.
The yield has reached much higher levels during periods of market weakness, peaking at about 3.87% in the early 90s, before trending lower over the following decades.
What does the record‑low S&P 500 dividend yield indicate for investors?
Check out the chart of that from strategist Charlie Biello in our story on Seeking Alpha. That's all for today's Wall Street Lunch. Look for links for stories in the show notes section. Don't forget, these episodes will be up with transcriptions at seekingalpha.com slash WSB. And join the highest level discussion of any stock or ETF with our community of serious investors like you. Find us at seekingalpha.com slash subscriptions.
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Chapters
5 chapters
1
Why is GameStop considering pulling its eBay takeover offer?
0:02–0:33
2
How is GameStop planning to finance the eBay deal and why did Michael Burry sell his shares?
0:33–1:10
3
What impact will higher component costs have on the upcoming iPhone 18 Pro price?
1:10–2:05
4
Why is Archer Aviation acquiring Boeing’s Wisk Aero, SkyGrid, and InSitu subsidiaries?
2:05–2:53
5
What does the record‑low S&P 500 dividend yield indicate for investors?
2:53–3:18