And yes, the BBY deal will get done. It may take $28-31 before they get approval but it will happen. So my question remains, where the heck are the GME founders and their plan to stop the shorts and put the stock back on solid footing.
Mr. Riggio - too busy trying to save Barnes and Noble. Plus, he cashed out most of what he had. Kim Family - ditto. Cashed out long ago. I believe there is even a Kim on the board of directors. He should be ashamed to let the shorts destroy this stock. Mr. Dematteo - His ship is sailing. Getting ready to retire and taking his cash with him. Great job of being the chairman of getting nothing done. Mr. Fontaine - Too sick to care. International CEO my but. Busy sitting around in the Carolinas watchin the sun set. Mr. Carlson - Long gone.
Now you have the current executive team. They couldn't find their way out of an open paper bag with an exit sign. Freakin useless! I sure do hope Mr. Raines knows magic tricks. Without taking this company private, the stock will erode to nothing even though it will still be a cash cow. The board should fire them all and start all over.
I wouldn't look for the board of directors or management to take this company private within themselves.
BBY and GME are very different in many ways. BBY is going private through a bid by the founder who owns a little over 20%.
BBY got f'ed by their overhead. Look at 3/4 of their store being allocated to appliances, tvs, and pcs. Add a crappy housing market and the rise of appl. The other 1/4 vg and dvds. Where gme and nflx ate their lunch. GME does not have nearly as high an overhead, they always have the smallest Sq ft in every mall and strip mall and are staffed by 2 ppl on avg.
If gme goes private it will be through private equity. I would look to KKR who has pieces in Toys r us, dollar general, and other retailers.
I would not count on the next console cycle adding much juice to the industry. The old consoles didn't have online gaming and mobile gaming to compete with. Now they do.
People have shifted their gaming time to these other non console type games. I have witnessed my own son who used to be die hard Xbox, PS3 and Wii user almost completely stop using any of these consoles. What does he play now? PC games like Minecraft and LOL. iPad and iPhone games. Other online games. Sure he very rarely fires up some COD but that is < 5% of his gaming time now whereas consoles used to be 100%.
The new consoles will likely fall flat as consumer disinterest in them continues because good enough free games exist on other platforms. Disruption is here. GME is in a dying area and their digital initiatives while good won't be near enough to offset the massive fall in consoles and console software