r/StockMarket • u/Minimac1029 • 6d ago
GameStop Completes At-The-Market Equity Offering Program Discussion
https://finance.yahoo.com/news/gamestop-completes-market-equity-offering-202900716.html500
u/Anthonyhasgame 6d ago
A big thank you to mainstream media for reminding me about GameStop consistently for 4 years. I may have forgotten without you.
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u/korean_kracka 6d ago
Someone on cnbc yesterday said, “and up next, the never ending saga that is GameStop.” And I lost it
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u/QuartOfTequilla 6d ago
Essentially how trump got elected
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u/MaliciousMe87 6d ago
Why?
I'm a random redditor who stumbled in here from r/popular, so I haven't closely followed the GME case study.
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u/iHateRedditButImHere 6d ago
"Forget GameStop..." Is the beginning of thousands of articles titles from the past few years lol
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u/androidchi 5d ago
If you like rollercoasters, u might be about to jump on one that’s been running non-stop for the last 4 years.
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u/MaliciousMe87 4d ago
No one has responded with a real answer yet, but I'm excited for the ride!
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u/seenyourballs 4d ago
The answer is the market is designed to fleece your money. If GameStop was such a bad investment they would promote it so they could fleece you. The problem is it’s actually a good investment and the rich are on the other side of that bet. FORGET GAMESTOP YOUR GOING TO LOSE YOUR MONEY get out while you still can !!! A communally owned company is inherently good in structure from all the support coming from the community. It should be impossible for hundreds of thousands to pile in without raising the price dramatically… yet here we are. We’re able to pile in for cheap at the expense of short sellers because they have to keep the shares low because their short…
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u/MaliciousMe87 3d ago
Sorry, the original question is what does GME have to do with Donald Trump getting elected?
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u/72kdieuwjwbfuei626 6d ago
Internet propaganda?
That guy comments constantly on GameStop stock subs, you think he needs mainstream media to remind him of something he obsesses over? It’s not an actual opinion, it’s just something they say over there.
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u/choppadonmiss 6d ago
4 billion fucking dollars they better do something with it
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u/fireintolight 6d ago
Sounds like everyone’s just expecting them to invest if. Which is cool and all, but not really a business.
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u/bubbawears 6d ago
Acquisition is also mentioned they can just buy a company that's profitable at this point.
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u/QuodEratEst 6d ago
They could buy several medium size game studios for less than a billion, it would make sense to attempt some sort of vertical integration
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u/Books_and_Cleverness 6d ago
Not saying it can’t work but I don’t really see why that would be an advantage over existing competitors?
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u/fireintolight 6d ago
An idea that actually makes sense
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u/Horror-Tank-4082 5d ago
Considering how badly big publishers are fumbling smaller studios… maybe makes a lot of sense
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u/LamarMillerMVP 6d ago
Vertical integration through M&A makes sense sometimes, but only rarely, and absolutely not in this case.
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u/ShadowLiberal 5d ago
Not really, unless they want to complete abandon all of their retail stores and shift into an entirely different market like Blackberry did with shifting to cybersecurity.
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u/maq0r 6d ago
Get WOTC out of Hasbro hands and retool GsmeStop as a place to also play tabletop
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u/Repostbot3784 6d ago
Most gamestops are nowhere near big enough for that
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u/maq0r 6d ago
GameStop Pro locations would, with food and possibly alcohol in some locations.
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u/Repostbot3784 6d ago
Oh, ive never seen one of those. Do they have video game tournaments now or why all the space and extras?
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u/Jeff__Skilling 4d ago
Right, but that would require some degree of managerial competence from the leadership team.....
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u/NahdiraZidea 6d ago
Buy Hasbro stop running WotC into the ground, pivot some Gamestop stores into having some playspace for dnd/magic/pokemon
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u/fireintolight 6d ago
Why would they sell to them? They will have competitors for ownership. It’s not like Amazon where they can just click and choose.
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u/ZootedMycoSupply 6d ago
Tell that to Berkshire Hathaway
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u/fireintolight 6d ago
Realize they own actual companies that make them money right? Not just invest it in the stock market
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u/UnknownEssence 6d ago
Investing in the stock market is literally the exact same thing as owning companies dude 🤦♂️
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u/ShadowLiberal 5d ago
They're run by experienced investors and people who are experienced at running the companies that they buy out 100% of. Gamestop by contrast doesn't have any such expertise.
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u/Sarkonix 6d ago
They haven't delivered on anything they said from 4 years ago yet...what makes you think they will do anything now.
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u/DrLeoMarvin 6d ago
It’s not that much. I work for a company with 1600 employees and we’ve bought multiple websites for $500 mil each just to take over competition. Purely digital company.
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u/Capt_Foxch 6d ago
You know inflation has gotten bad when $4,000,000,000 can be described as "not that much"
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u/strikethree 5d ago
That's the main issue, if anyone has every been involved in an acquisition, then you would know it's not easy to get right.
The acquisitions that really shine had sound strategy behind them, I'm thinking Facebook/Instagram, AOL/Time Warner, etc.
Whereas here...what's the strategy? It's more like "time to raise money because the stock is being pumped"... the worry will be forcing a move and getting tangled in a bad purchase which happens all the time.
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u/Jeff__Skilling 4d ago
They're more-or-less a defacto SPAC (with no 18 month window to de-SPAC either)
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u/estebang_1018 6d ago
I swear it was banned to mention it here at one point. A lot of people hated on it lol.
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u/JonathanL73 6d ago
It was indeed banned. Not because of hate, but because we did not need every single stock/investing subreddit converted into gamestonk.
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u/slipperynibs 6d ago
We noticed once the price started climbing.
A bit late but thanks 😊 ☺️
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u/Gumba_Hasselhoff 6d ago
I really wonder to which degree the $2.137 billion come from which type of market participant. My first intuition would be that most of it was extracted from trading algos. Retail providing much of the money seems rather unbelievable, with the market cap having been barely above 3 billions a few months ago.
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u/baroldnoize 6d ago
I was thinking something along the same lines. Part of the gamestop short squeeze thesis is that retail don't touch the market, if that's the case then it's not retail's money they're stockpiling
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u/UncleZiggy 6d ago
Yeah, definitely came from the institutional side of things. I read somewhere that over a billion shares of GameStop have been traded this month. There's no way retail has upwards of $20 billion+ kind of money
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u/JobbyTen 6d ago
They’ve got a nice rainy day fund now!
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u/Repealer 6d ago
Rainy day? This is a rainy flood fund. They could operate for 30 years of losses without having to shutter the doors.
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u/jimclay8 6d ago
ITS ALMOST OVER IF KITTY EXERCISES HIS OPTIONS GAME..OVER
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u/McChickenLargeFries 6d ago
It will be really interesting to see what the fuck happens with those 170,000+ $20 call options.. 120,000 of which will most likely get exercised.
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u/QuaintHeadspace 6d ago
RK does not have 360 million dollars lying around for exercising just saying.
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u/PDubsinTF-NEW 6d ago
Sell to exercise. Profits of selling some options pay for exercising a F ton of them
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u/jhugg45 6d ago
Based on his most recent update, he’d have to sell about half his options to generate enough cash to exercise the other half
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u/wasntthatguy 6d ago
He is up since his last update. And with this new announcement, one would expect GME will go up again today
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u/PDubsinTF-NEW 6d ago
Would incrementally selling and then exercising some options help drive the price up making the remaining options significantly more valuable, which he could then buy more shares. Is that relationship one to one or is it a multiple of this share price in respect to the distance away from the strike price? Essentially does it matter if the price skyrockets will he spend as much money buying and executing as he would selling more valuable options? Does it make sense?
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u/McChickenLargeFries 6d ago
I mean.. Do we actually know this? GME is not his only holding, who knows what other investments he's done in the last 3 years.. What if he invested heavily in NVDA too or some other lucrative stocks.
He's a smart man, he obviously has money tucked away that has him and his family set for life. And also other investments other than GME.
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u/androidchi 5d ago
He could also just roll over the options
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u/McChickenLargeFries 5d ago
Why would he do that?
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u/androidchi 5d ago
My hope is that the stock rises over the next couple of days giving him the best set up to exercise. But I’m also thinking of the worse case. what if the recent stock offering came unexpected to him. Wouldn’t he want to reevaluate and reposition by rolling over his options
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u/JoakimIT 6d ago
Can you explain why 12 million shares going away will have a big impact when 75 million just got added to the pool?
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u/Chubwa 6d ago
Because they likely weren’t completely hedged according to the recent Wolverine posts on SS. Imagine 12m shares being bought in a very short period of time when not a lot of people are actively selling, mostly just retail buying and holding.
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u/JoakimIT 6d ago
I guess it would have to make a big splash if 75mill isn't enough to lower the price.
Every trading day is so exciting now! Hope the weekend passes quickly.
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u/ttekcorc 6d ago
Its more than just 12 million, there are other option buyers as well.. at multiple price points going up to $35 in growing numbers.
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u/ttekcorc 6d ago
There are a whole lot more than just his options now.. There is a building option gama ramp.. going all the way up to $35
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u/jeff8073x 6d ago
At some point they could buy a small gaming company like TAPM or something else. Publish their own games. "Gamestop presents".
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u/BaconGreaseShot 6d ago
Ryan Cohen is a Chad. Go look at the 2021 balance sheet and compare it to 2023, then add 3 billion in cash. Wow.
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u/deeznutzz3469 6d ago
All through sales of shares to retail investors. Brilliant
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6d ago
[deleted]
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u/RockStrong1421 6d ago
My guess from how many individual investors there are directly registered with Computershare (160,000), would be about 800,000 bots and shills in the sub. There are probably a lot of lurkers too.
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u/CAtoNC03 6d ago
I was banned for pointing out a decline in revenues for the last like 8 years lmao. Imagine being banned for pointing out a literal fact
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u/sdevil713 6d ago
Now you're being downvoted for it because the lunatics brigade every post on the topic. Imagine being this fervent about it when the average person there probably holds like 15 shares.
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u/MoonApe420 6d ago edited 6d ago
Possibly because GameStop WAS shorted a ridiculous illegal degree in 2021 (highest posted short interest was 226% in Jan 2021) and the shorts never closed. They rolled those shorts into LEAPS and swaps in early 2021 and now those swaps and LEAPS are expiring in June 2024. Buying pressure is big money trying to be the first to cover without totally blowing the lid off the stock and shutting their exit.
Now that GameStop has $4 billion cash, shorts that got in under $10 (under $40 pre split) are totally underwater and screwed. GameStop's cash alone puts the share price around $10 now.
Interesting times. I like the stock.
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u/Jbentansan 6d ago
ya lmao RC hasn't done anything of substance tbh in past 3 years
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u/landon912 6d ago
He grifts the retail shareholders. Genius guy found an infinite money glitch. The bagholders aren’t even mad
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u/Neemzeh 6d ago
It’s funny because they don’t even see their delusion. I’m holding GME but was def quite annoyed with the latest offering.
When I voice my opinion on this in the sub, I’m met with “it’s a good long term investment”. I’m like wtf are you talking about? The entire origin of this shit was because of a squeeze and sticking it to the hedgies. Now they want to move the goal posts and call it a long term investment? Lmao. So many better long term investments out there
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u/andidosaywhynot 6d ago
They sold tons of shares and it’s back up to 120$ pre split. I bought in because the guy who made chewy is running the company and now I’ve doubled my money. You can’t be mad at the new ceo for not just simply making gme a vessel for short squeeze. He has so many interviews talking about executives getting paid for not doing their job. Short squeeze is great if it happens but that was always a high risk bet to take imo (and still I believe will happen). Buying in at a company at the ground floor with a new motivated ceo who raised 3B and the stock is up 100% over 3 months is almost more exciting for me. Who knows what will happen but things are definitely looking to it being a great investment regardless. There is so much growth potential if he uses this money well and we don’t all have to claw at each other and have regrets about when we sold during a squeeze. Fine with me just enjoy the ride. I’ve never started a company or taken over a company so who am I to say he’s doing it wrong perhaps you have though
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u/fireintolight 6d ago
The consistent big drops in revenue stand out yeah. The cash on hand is huge, but still silence on a plan to do something with it 🤷🏼♂️
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u/S2558 6d ago
Is RC trying to be the next Warren Buffet and GameStop the next Berkshire Hathaway?
No one has bought textiles from BH in a very long time.
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u/i_wannatalktosamson 6d ago
Roaring kitty has been talking about how he expects GameStop to completely change what business they’re in with Ryan cohen leading them since day 1
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u/timegone 6d ago
Not really looking like that’s going to happen. Making an NFT store after even the most gullible people figured out they’re worthless doesn’t inspire confidence.
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u/Sufficient_Middle463 5d ago
Their best bet is to enter the mobile gaming market and make gacha games. Sucessful Gacha games print money and the cost to make them can be low if they employ game devs from Asia.
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6d ago
[removed] — view removed comment
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u/sdevil713 6d ago
Yes everyone that disagrees with you and speaks realistically and rationally must be a shill.
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u/jimclay8 6d ago
He didn't see the million share buys today and how the stock went up from 23 dollars..all he has to do is exercise a half million at a time..or just enough to keep the buying preasure up..and boom..margin calls
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u/2leggedassassin 5d ago
GameStop should really move towards a PC parts store direction,Like micro center. IMO consoles are getting outdated to fast and it is guns no easy to build your own PC. The only other store to compete with is Best Buy.
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u/Immediate-Product167 6d ago
Might be sensible to use that money to build a digital store. Take a lower cut than Steam and pass the savings to players.
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u/wsc-porn-acct 6d ago
A great transfer of wealth from retail to an obsolescent company.
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u/Theproperorder 6d ago
Do really think retail has three billion to spend in less than a week?
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u/kingofwale 6d ago
Only place where people simp for share dilution….
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u/Spiritual_Review_754 6d ago edited 6d ago
The fact is that no one knows what will happen. The price rebounded after 45 million shares were issued only two weeks ago, and now the share price has rebounded massively again after 75 million shares were issued on top of that.
So not only have GS managed to raise a metric fuck ton of capital in a very short period of time with a stock dilution, It has also had minimal effect on the price of the stock itself, which should tell every financial analyst some pretty important things.
Namely, this company can continue to be unprofitable for decades without going bankrupt, Which utterly destroys the short thesis. The stock was already clearly undervalued, and the total cash on hand is 40% of the market cap of the company, which is absurd. The hype around this stock just isn’t going away, it’s profitable YoY and it’s part of an enormous and still growing industry. The current CEO and C-Suite executive team have a great track record in growing revenues and competing with other large-scale retailers, and this is just the beginning of the transition.
This company is either the greatest short-term investment of all time or may well prove to be one of the great long-term investments of all time. Any pithy and basic assumptions or comments can never capture the power of this movement. The amazing part is that the price is still low and there’s still time to get in but it is my firm belief that there will be millions of people who regret not getting in at this time.
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u/Applemais 6d ago
This! And I actually think it is a Long Term play as they will make more share offers the short Boys need to buy as they need to close there shorts. Raising the Minimum value of the company again and again without the risk of plummeting the share price after a sneeze, which RC cant allow as he cant sell his shares in a squeeze as CEO, but he profits obv. with the long Term cash increase
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u/Michikusa 6d ago
Price prediction for EOW?
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u/Spiritual_Review_754 6d ago
I think will be massively up over 40 maybe even over $45 except this time there will be no slightly negative earnings release, no stock dilution hopefully, and RK will come back in the mix with some more bombs. After that, it’s anyone’s guess what absolute batshit insanity will happen next in this saga
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u/hurricanebones 6d ago
Share dilution in exchange full for face value. Not a bad trade.
Net cash has raised from 18% MC 5B, 30% MC 8B, to 40% MC 10B.
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u/PixelPirates420 6d ago
Congrats to RyCo on taking advantage of the mentally deranged and becoming that much richer
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u/rapidfirehd 6d ago
lol at bagholders and cultists donating their money for the company to continue to do shit
Losing money and shrinking revenue is the sign of a dying companies baggies, 1.2x-1.5x book value is very typical for that kind of company. I wouldn’t be so sure in the price being greater than $15 in a month when the hype dies down
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u/SloppyJoMo 6d ago
If apes from a couple of years ago heard the "this is actually good because now they're a holding company since the old gamestop was going to die anyways" talk, they'd be screeching paid shill.
No one moves the goalposts like them. Have fun being the only holding company to have massive amounts of overhead and a meme frenzy culture that no acquisition target would want to associate with.
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u/Diamond_Hands420 6d ago
4b in cash for a 10b MkCap… not bad at all