'We're Coming for eBay One Way or Another' — GameStop CEO Ryan Cohen Continues Push for Online Auction Site by Bumping Ownership to 10%
GameStop now owns 43.4 million shares after eBay rejected an unsolicited offer that included about $20 billion in proposed financing.
- On Friday, GameStop increased its stake in eBay to about 9.8%, owning 43.4 million shares and signaling continued pursuit of the online marketplace after its unsolicited takeover offer was rejected earlier this year.
- GameStop CEO Ryan Cohen launched an unsolicited $55.5 billion bid for eBay in May, but the marketplace's board rejected the proposal one week later, calling it "neither credible nor attractive" following a thorough review.
- Cohen envisions combining GameStop's retail experience with eBay's platform to create a live commerce leader, while eBay has prioritized disciplined execution and profitability under chief executive Jamie Iannone since 2020.
- Despite receiving no engagement from eBay, Cohen is exploring ways to take his case directly to shareholders, insisting his goal is to maximize shareholder value and that the business plan is "not that complicated."
- The proposal would require $25 billion in new debt, shifting eBay to over 5x EBITDA and fundamentally altering its risk profile; analysts question the financing given the mismatch between the smaller buyer and larger target.
12 Articles
12 Articles
GameStop Owns Nearly 10% of eBay in Confusing Hostile Takeover Strategy
According to a regulatory filing on Friday, GameStop owns nearly 10% of eBay, showing that they’re serious about buying eBay after recent unsolicited offer rejections. Back in May, GameStop’s CEO Ryan Cohen shared his plan to own eBay. And after sending his offer, many were confused about how he was going to afford the buyout in the state that GameStop was currently in. While Cohen explained his intentions in the offer, he also posted hilarious …
'We're Coming for eBay One Way or Another' — GameStop CEO Ryan Cohen Continues Push for Online Auction Site by Bumping Ownership to 10%
Video game and collectible retailer GameStop now owns nearly 10% of eBay following its offer to purchase the online auction website earlier this year.An SEC filing shows GameStop currently controls 43.4 million eBay shares, or about 9.8% of the company. That's nearly double the 5% stake it reported when CEO Ryan Cohen revealed his goal to acquire the company in May."eBay is a platform that I can build into something much more profitable and much…
GameStop Reveals Hostile Takeover of eBay Has Begun as PlayStation Ends Physical Game Sales
GameStop is moving forward with its attempted hostile takeover of eBay. The timing is significant, as Sony prepares to eliminate the product that once defined the video game retailer’s business. According to a new regulatory filing, GameStop now owns 43.4 million shares of eBay, representing approximately 9.8% of the e-commerce company. The retailer dramatically increased its position after eBay rejected its unsolicited $56 billion acquisition p…
GameStop (NYSE: GME) Acquires 9.8% Stake In eBay (NASDAQ: EBAY) Following Rejected $56 Billion Takeover Bid
GameStop (NYSE: GME) has disclosed ownership of 43.4 million shares in eBay (NASDAQ: EBAY), representing a 9.8% stake in the e-commerce giant, up sharply from roughly 5% in early May. The move marks a significant escalation in GameStop CEO Ryan Cohen’s pursuit of eBay, after his initial acquisition offer of roughly $56 billion was rejected by eBay’s board. The videogame retailer converted its economic exposure into common stock over recent weeks…
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