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0 pointsPeterisP5y ago0 comments

A trivial (not necessarily smart or optimal, but possible) way for GameStop to avoid that eventuality is to liquidate; close down the business and sell off all the assets - that wouldn't be a bankruptcy, they have more than enough cash and assets to cover their debts, so they would have a nonzero amount of cash left over to distribute to the shareholders.

In essence, you're correct that if the company goes bankrupt, the stock is worth nothing, but you make a mistaken assumption in that a company without a viable business model or future profit must go bankrupt - if they have an asset base, they can restructure or shut down long before their accumulated wealth is spent.

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PartiallyTyped5y ago

You think of what GameStop was, not what it is becoming.

Chewy's Founders and now board members are obviously not in the business of losing money, they bought a sizeable portion of the stock and are now members of the board.

GME has been transitioning to e-commerce (this is where Ryan Cohen and the new board comes in), where they tripled their sales (e-commerce) each year.

In addition, one of the board members is owner of Cloud9, an e-sports company. I suspect that this could enable GME shops to organize events/tournaments, another idea is to play the same role sports pubs do, but adjusted for e-sports.

gnosis895y ago

this is exactly what I've been thinking...Gamestop has over 5,000 physical locations across the country...this is an extremely valuable resource that if utilized correctly could turn them into a hugely successful empire again...Esports is still in its infancy but it's already a billion dollar market...even better...why not partner with AMC, another entity in this WSB movement that is failing and also has many locations with huge screens, sound systems, and seating...perfect for esports or some kind of AR/VR setups, IDK, if these CEO's can use their imaginations there's many paths they could try...

mlrtime5y ago

In that case the stock price would simply be assets-liabilities.

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