[colliric]

I do not understand this post at all.

This was a unique opportunity for loyal grassroots customers and casual gaming or cinema fans, who happened to use Reddit, to save a company they love from Bankruptcy by literally buying it.

Wall Street has basically told them to fuck off by blocking trades, forcing them to sell back and "how dare you literally purchase shares to save companies you love from financially dying".

A damn shame it is.

If you bought in, HOLD ON TO THAT. Don't give an inch to these bastards.

Now you own your own personal shares in a video game retailer and can vote in that companies elections while pressuring gaming companies or developers to make good games that move both physical and digital units. Use it. Use your vote.

Fan Petitions don't work too often. Buying shares and getting to vote in shareholder meetings works way better guys. They have to listen to you then.

[Potemkin]

This was a unique opportunity for loyal grassroots customers and casual gaming or cinema fans, who happened to use Reddit, to save a company they love from Bankruptcy by literally buying it.

Wall Street has basically told them to fuck off by blocking trades, forcing them to sell back and "how dare you literally purchase shares to save companies you love from financially dying".

A damn shame it is.

If you bought in, HOLD ON TO THAT. Don't give an inch to these bastards.

Now you own your own personal shares in a video game retailer and can vote in that companies elections while pressuring gaming companies or developers to make good games that move both physical and digital units. Use it. Use your vote.

You can't save a company just by buying its shares, @colliric. GameStop's business plan is fundamentally broken, as @Rancid pointed out. Just shovelling money into the company isn't going to fix that.

[Rancid]

This was a unique opportunity for loyal grassroots customers and casual gaming or cinema fans, who happened to use Reddit, to save a company they love from Bankruptcy by literally buying it.

Wall Street has basically told them to fuck off by blocking trades, forcing them to sell back and "how dare you literally purchase shares to save companies you love from financially dying".

A damn shame it is.

If you bought in, HOLD ON TO THAT. Don't give an inch to these bastards.

Now you own your own personal shares in a video game retailer and can vote in that companies elections while pressuring gaming companies or developers to make good games that move both physical and digital units. Use it. Use your vote.

Just buying the company wouldn't save it from bankruptcy. Further, all of these shares are on the secondary market, which means gamestop does not receive any money from these stock buys. There is no monetary benefit that gamestop the company is receiving from what is happening here. Buying gamestop with the intent to hold (so that you can vote) is straight up fucking dumb as the company is the titanic.


That said, as an FYI:
The main thing share holders vote on are the board of directors (also a few other things like mergers). They do not get a direct say in strategy or operations. That is left to the C-level and VPs who are hired by the board. How would a bunch of gamers know who are the right board members to vote in? What industry knowledge would these gamers have? Just being a fan of video games and movies doesn't make you qualified to influence the direction of these companies.

Further the trends of the industry are completely against this company. Doesn't matter if video game companies made the greatest games ever. People have little incentive to walk into these shops and physically buy a game.

[colliric]

You can't save a company just by buying its shares, @colliric. GameStop's business plan is fundamentally broken, as @Rancid pointed out. Just shovelling money into the company isn't going to fix that.

Saving it from immediate bankruptcy and getting to vote in future elections is better than doing nothing.

[Rancid]

Saving it from immediate bankruptcy and getting to vote in future elections is better than doing nothing.

No, buying gamestop would not save it from any sort of bankruptcy. You clearly have no understand how this works.

A change in ownership would not absolve gamestop of its financial liabilities. People buy the stock does not mean gamestop gets revenue. This is a secondary stock market, companies do not receive money for stocks sold on the secondary market (which is the kind of market most the world buys stock in).

[Potemkin]

Saving it from immediate bankruptcy and getting to vote in future elections is better than doing nothing.

But as @Rancid pointed out, this wouldn't have saved it from bankruptcy - it's just some guys betting on whether the business will continue to fail or not. GameStop won't see a red cent of any of this money.

[colliric]

Further the trends of the industry are completely against this company. Doesn't matter if video game companies made the greatest games ever. People have little incentive to walk into these shops and physically buy a game.

Bricks and mortar stores are still a fundamental requirement of the industry, because they are needed to shift consoles themselves, merchandise and console accessories.

It is shortsighted to believe that it's only about the games. Not everyone buys consoles themselves or PCs online from Amazon.

Saving a company from bankruptcy gives the company a chance to turn things around.

Netflix changed its business model from snail mail DVD post to Digital Streaming. They had the time, money and willpower to do it. Blockbuster should have done the same. Also Netflix basically killed off their own business model to survive as company.

Nintendo knows this, they've almost gone bankrupt more times than they can count. Only to survive by adapting their business model to new trends(such as when they embraced and went fully in on Video Games in the late-70s).

[Potemkin]

Bricks and mortar stores are still a fundamental requirement of the industry, because they are needed to shift consoles themselves, merchandise and console accessories.

No, they're not.

It is shortsighted to believe that it's only about the games. Not everyone buys consoles themselves or PCs online from Amazon.

Saving a company from bankruptcy gives the company a chance to turn things around.

There's no evidence that they are capable of doing so. Quite the reverse, actually.

[colliric]

There's no evidence that they are capable of doing so. Quite the reverse, actually.

Nintendo did it many times over(company is the oldest of the three console manufacturers). Netflix famously did it.

Heck Fox News technically began in the 1920s as "20th Century Fox Newsreels"(or *Fox News* for short). Murdoch revived the brandname.

Steve Jobs legit saved Apple in the late-90s by revitalising the company's business model.

[Rancid]

Bricks and mortar stores are still a fundamental requirement of the industry, because they are needed to shift consoles themselves, merchandise and console accessories.

It is shortsighted to believe that it's only about the games. Not everyone buys consoles themselves or PCs online from Amazon.

Saving a company from bankruptcy gives the company a chance to turn things around.

You keep shifting back and forth around topics. You do this way too much. Likely because you don't understand what you are talking about. You raise two separate points here I will address.

Retail has been struggling a lot the last few years. Yes, retail will not disappear completely, but it is contracting dramatically. The winners of retail will be those that have scale. This would be the Targets, Walmarts, Best Buys of the world. In the UK I guess it would be tesco (if I remember right). It is not going to be small scale retailers like gamestop surviving the contraction. Gamestop isn't the only place to buy games. You have the targets, walmarts, and best buys of the world, all of which retail video games and consoles. On the other end, gamestop is getting pressed by the independent "mom and pop" shops that surprisingly actually do well in the gaming space (especially retro game sales and trades), because gamers apparently like to shop at their "local friendly gaming shop". Gamestop does not have the scale to compete with the big dogs. They also do not have the "local mom and pop" vibe either. If they survive, they will be a tiny tiny tiny company operating in only a few select cities. Or they will go online.

As for bankruptcy. How does people buying gamestop save it from bankruptcy? Again, gamestop gets no money from these stock buys.

[Rancid]

Nintendo did it many times over(company is the oldest of the three console manufacturers). Netflix famously did it.

Heck Fox News technically began in the 1920s as "20th Century Fox Newsreels"(or *Fox News* for short). Murdoch revived the brandname.

You are jumping around again. It's certainly possible that the gamestop brand can be revived in some other form or fashion with a new business model. However, in its current form, gamestop is going to crash and burn. Lots of investors and banks are going to lose lots of money, lots of people are going to lose their jobs, lots of landlords are going to lose rent. This is inevitable. There will be a lot of loss before it could ever get better.

This is precisely why there were so many fucking short positions on gamestop. Everyone can see it sinking from 30000000 miles away.

Buying gamestop now is fucking stupid. What would be smarter is to wait for the crash, wait for the bankruptcy and maybe by the brand dirt cheap to then revive it under a different model. None the less, it's going to be fucking ugly.

[Rancid]

All of that said, never say never. That new CEO they hired could possibly turn things around. If he's successful, it will comes at the expense of lost jobs, broken leases, and possibly a bankruptcy. THat's assuming they could survive a bankruptcy. It's very possible a judge would order that gamestop liquidate as opposed to restructure with new investment. In this scenario, even if gamestop emerges as a viable company, there will still be great financial hardship for many many many people. In fact, this has already happened, there have been many layoffs at gamestop over the last few years.

In any case, back to the original point. It's foolish to buy gamestop right now.

[Fasces]

Bravo to the Redditors.

GameStop's business plan is fundamentally broken,

The old model certainly is, but from what I understand they're going to try to ape the transformation of EB Games in Australia - sell nerd culture merch, board games, host game nights like FNM or DND, etc. Make it more of an experience type store - worked in Australia. Its feasible that the company will be saved, especially if they can capitalize on this frenzy.

[Rancid]

Bravo to the Redditors.

I agree with this sentiment. Especially since it's not my money being used to squeeze the fat cat banksters. There's no risk for me here.

[Finfinder]

It seems there may be some political twists. Apparently, Janet Yellen was paid over $800k between October 2019 and October 2020 by Citadel, the firm that bailed out Melvin capital and may have used its influence to force Robinhood to prevent its users from buying or short selling GameStop stock.

The GameStop Connection to the Biden Team and Janet Yellen, Jen Psaki Spins Like Anything When Asked

Hrmm....


Well, well, well... Not even two weeks in office, and they are already manipulating the markets to save billionaires shorting main street America.

She is the first woman treasury secretary.

[Rancid]

The old model certainly is, but from what I understand they're going to try to ape the transformation of EB Games in Australia - sell nerd culture merch, board games, host game nights like FNM or DND, etc. Make it more of an experience type store - worked in Australia. Its feasible that the company will be saved, especially if they can capitalize on this frenzy.

They have started trying this. The point here is that the current model is broken, its not clear if the new model you describe will work (thus far it has failed, as I mentioned before, they have already started trying convert to a gaming culture shop in a few select markets. It hasn't been as successful as they'd hope). With all of this uncertainty, debt, lack or revenue, mismanagement, even some scandal they've had over the last few years. The stock is crazy over valued, it will need to correct and factor in all of its problems. If you (I don't mean you) bought high, you are fucked.

[colliric]

Bravo to the Redditors.

The old model certainly is, but from what I understand they're going to try to ape the transformation of EB Games in Australia - sell nerd culture merch, board games, host game nights like FNM or DND, etc. Make it more of an experience type store - worked in Australia. Its feasible that the company will be saved, especially if they can capitalize on this frenzy.

This is also how Nintendo remained highly profitable during it's own GameCube and Wii U financial downturns. Licence the shit out of nostalgia. It was a mutually beneficial arrangement. Heck it's basically the reason they invented Amiiboo. EB Games was pushed in this direction by Nintendo themselves.

GameStop technically own EB Games now.

It's not about "expansion", it's a survival strategy. Nintendo and EB Games now have a strong business relationship. And the "Nintendo Experience" is now at EB Games rather than the old Department store locations in Australia.

[Igor Antunov]

What a disaster. Robinhood investment app just banned Gamestop, locked hundreds of thousands of accounts, seized the funds/shares, sold them off for a massive loss and is now allowing wallstreet investors to buy exclusively. Bahahaha. Meanwhile google deleted 100,000 1 and 2 star user reviews of the app. Both sides of US government are defending their actions.

American tech and finance corps are this brazen because they know they can get away with open criminality.

So, about that FWEE MAWKET. Ba ha ha ha

[wat0n]

They're also getting sued by users for that. I'm guessing they will also be getting out of business.

[Igor Antunov]

They just helped cover an $80 billion big money investor loss through outright institutional fraud. They will be rewarded, and put in charge of a new company. This will then all continue. Can't punish a defunct company after all.

Socialism for big corps, capitalism for the little guy lol.