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GameStop CEO Ryan Cohen Continues Push to Buy eBay, Bumps Ownership to 10%
GameStop, led by CEO Ryan Cohen, has increased its stake in eBay to nearly 10%, intensifying its efforts to take over the online auction giant after eBay rejected an unsolicited takeover bid earlier this year. The move signals that Cohen has no intention of backing down despite eBay's public dismissal of the offer, and points to an escalating standoff between the two companies as Cohen pursues his vision of merging GameStop's retail and collectibles business with eBay's marketplace.
An SEC filing shows GameStop now holds 43.4 million eBay shares, roughly 9.8% of the company, up from the 5% stake disclosed in May when Cohen first revealed his $55.5 billion takeover offer at $125 per share in cash and stock. eBay rejected that bid a week later, branding it "neither credible nor attractive," and Cohen told Bloomberg that eBay has still not made contact, accusing its leadership of being "entrenched" and "hiding behind their advisors." Cohen, who is personally committing $500 million to the effort, has outlined plans to combine GameStop's stores with eBay's platform for live commerce, an in-game digital marketplace and same-day authentication services, while insisting his goal is simply to maximise shareholder value.
In short
- GameStop raises its eBay stake to almost 10%
- eBay previously rejected GameStop's $55.5bn takeover bid
- Cohen says eBay hasn't responded but he's "coming for" it
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Cohen's vision presents a credible strategic case for transforming eBay through integration with GameStop's retail footprint and collectibles expertise, creating genuine synergies in live commerce, digital marketplaces and authentication services that could unlock substantial shareholder value. His personal $500 million commitment demonstrates serious conviction, and eBay's outright dismissal without substantive engagement suggests the board is prioritising management entrenchment over genuine consideration of what shareholders might gain from a transformative merger.
The case against
eBay's board has a fiduciary duty to act in shareholders' interests, and rejecting an unsolicited bid does not constitute entrenchment—the valuation and terms may simply be inadequate, or the board may reasonably judge that eBay's long-term interests are better served independently. The strategic benefits of merging a struggling gaming retailer with a general marketplace platform are speculative; the integration risks are substantial and well-documented in corporate history, and eBay's existing strategic options may offer superior value without exposing shareholders to execution uncertainty.
Explained simply
GameStop is a video game and entertainment retailer with physical shops, whilst eBay is an online marketplace where people buy, sell and auction everything from collectibles to second-hand goods. Ryan Cohen is the chief executive of GameStop, and he is attempting to take over eBay despite the company's firm rejection of his plans.
In May, Cohen made an unsolicited offer to buy eBay for roughly $55 billion. The eBay board rejected this proposal as "neither credible nor attractive", and has refused to engage in further discussions. Nevertheless, Cohen has continued buying eBay shares in recent months, steadily increasing his stake as a signal that he intends to pursue the takeover regardless of management's opposition.
Cohen's plan involves merging GameStop's retail shops and collectibles business with eBay's online platform to create new services such as live commerce and professional authentication of collectible goods. The standoff between Cohen and eBay's leadership reflects a fundamental disagreement over the company's future direction, and the outcome will likely depend on whether Cohen can persuade other shareholders that his vision is worthwhile.
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