Ryan Cohen offers unsolicited takeover bid for eBay

GameStop CEO Ryan Cohen submitted an unsolicited, nonbinding takeover proposal for eBay this week. eBay’s board said it is reviewing the proposal with legal and financial advisers and has told shareholders to take no action.

The offer arrived without prior discussions between the companies. eBay’s board said it will evaluate how much value the transaction would deliver to shareholders, whether GameStop shares would be acceptable as consideration and whether a credible path to closing exists. eBay’s market value is about $48 billion, compared with roughly $11 billion for GameStop.

Cohen framed parts of the approach as a public push to build momentum. He posted that his eBay account was suspended after he listed dozens of items to “pay for eBay.” The listings included retro video games, trading cards, life-sized character statues, GameStop store signs and used apparel. Some auctions drew four-figure bids; a pair of socks and store signs attracted bids above $14,000. Each listing included a signed copy of Cohen’s letter to eBay management and free shipping.

In a letter to eBay management, Cohen outlined plans to use GameStop’s roughly 1,600 U.S. stores as product-checking and delivery hubs for online sellers and to convert some locations into live-selling studios for streamed product demonstrations. In the letter he wrote the combined company “could be a legit competitor to Amazon.”

On financing, GameStop has a commitment letter from TD Bank for up to $20 billion of debt financing. That commitment would still leave a substantial gap relative to eBay’s market value. Investor Michael Burry disclosed he sold all his GameStop shares and wrote, “Never confuse debt for creativity.”

Cohen became a major GameStop investor in 2020 and took the CEO role in 2023. Since then he has overseen store closures and about 4,500 layoffs. GameStop’s market value rose from about $1.3 billion in 2021 to near $11 billion today. eBay’s board has not recommended any action and will continue consulting advisers as it evaluates the proposal’s terms, the proposed consideration and the likely path to closing a deal.