GameStop CEO Ryan Cohen has launched an unsolicited $56 billion bid to acquire eBay with the explicit goal of serving as the CEO of the combined company. In recent interviews, Cohen stated that he never actually wanted to be the CEO of GameStop and is far more “passionate” about leading eBay.
Key Details of the Takeover Attempt
- The Offer: The bid is valued at $125 per share, structured as approximately half cash and half GameStop stock.
- Financing: GameStop plans to use its $9.4 billion in cash reserves alongside a $20 billion debt commitment from TD Bank.
- Strategy: Cohen aims to turn eBay into a legitimate Amazon competitor by cutting costs, leveraging GameStop’s 1,600 physical stores as fulfillment centers, and focusing heavily on the collectibles market.
- Personal Involvement: As a publicity stunt to show his commitment, Cohen began selling personal items like “used socks” and a copy of Windows 2000 on eBay to “fund” the deal. This led to his account being briefly suspended for “risky” activity.
Current Status
eBay has officially confirmed it is reviewing the bid, though market analysts remain skeptical due to eBay’s market capitalization being nearly four times that of GameStop. Cohen has indicated he is prepared to go hostile if the board does not engage with his proposal.
