alt Hacker NewsGameStop has a standing approved agreement to issue up to a billion new shares. If you read the offer you will see it is 50% financed by GameStop stock.
They threw him a hardball today in his cnbc interview on this topic. $GME stock value would plummet short term, but the combined company would revalue much higher.
Current Gamestop shareholders would be diluted. They would own, proportionally, a much small slice of the combined company, but at a higher price point.
The framing of this as, "Ryan Cohen is diluting Gamestop shareholders in order to meet the terms of his enormous pay package" is disingenuous though, as his pay package is all stock. He's diluting himself too. He obviously has faith that, long term, the value of the combined company can substantially grow.
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>He obviously has faith that, long term, the value of the combined company can substantially grow.
Depends how much of them he has before and he will after, it might still be worth diluting if difference is vast.
Also, why long term if short term could also do?
If his choice is between not getting paid due to not meeting targets, and getting paid in diluted stock, then it’s straightforward enough.