So what would it take for GME to go private? BBY is lining up the pieces right now because they know that the public market will continue to beat the stock up for the forseeable future. Analysts state that it will take an of of around $30 for the idea to fly.
So I'm not sure why GME isn't going down that same road. The stock is going nowhere for the next 18 months. The old guard of executives have already either left or are leaving taking their millions along with them. And everyone else is left holding their sausage (sandwich that is..)
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 think it would happen before the release of the next gen consoles from the big 3 if it is to happen. Each console cycle has led to growth in the industry
Not sure. Other than Ttwo anouncing results and GME anouncing earning release date. But these are huge stock price swings relative to the volume of shares traded. Would have been nice to have sold at 18 and bought right back 16.
I've also been following bby. I think one of the biggest difference between bby and gme is that bby has one individual who owns like around 20% of bby stock. I think he was the founder of bby and he is spearheading the effort to take bby private. Whereas with gme, there are just a lot of excecutives, who know of running a company. I'm not sure if they would have a vested interest in GME going private by another party. I believe GME's current management wants to run gme long term. They get paid well and they get stocks which pay them dividends I believe. But long term, it's also in the interest of GME excecutives that GME continues to do well. The higher the share price long term, the more they can sell their stock options for. I do believe GME will continue to make money long term making both executives and shareholders wealthy. Just my opinions. I'm long GME. I still believe GME will suceed long term. And I'm still waiting for the day when some big news comes out and GME's stock price explodes like a volcano.