GameStop CEO Ryan Cohen’s eBay Maneuver
On Wednesday, GameStop’s CEO, Ryan Cohen, decided to take a jab at eBay’s board members while simultaneously selling items on the platform to support the company’s ambitious acquisition plans.
The situation escalated after Cohen and GameStop proposed acquiring eBay for $55 billion, offering $125 per share. This came right before a viral moment on CNBC featuring “Squawk Box” co-host Andrew Ross Sorkin. Shortly after announcing his intentions on X, Cohen’s eBay account was suspended just hours later.
Cohen remarked, “I pay my eBay bills by selling things on eBay,” only to post about the suspension of his account ten hours later. eBay notified him through a screenshot he shared, stating, “We would like to inform you that your eBay account has been permanently suspended for activity that we believe is endangering the eBay community.”
eBay’s CEO, James Iannone, has yet to respond to any requests for comment regarding the suspension.
In a podcast on TBPN, Cohen suggested eBay wasn’t pleased with his acquisition proposal. Reflecting on the situation, he noted, “They’re really not going to like me after this interview.” His drive to acquire eBay stems from observing a potential synergy between GameStop’s business model and the collectibles market, claiming he could steer eBay in a more innovative direction compared to the current leadership, which he criticized for lacking ambition.
Cohen expressed strong sentiments regarding traditional corporate leadership, stating the landscape of American capitalism is deteriorating. He criticized the shift from “owner-operators” to what he termed a “parasitic class of corporate bureaucrats.” He elaborated that many board members seem to exist primarily for financial gain, rather than genuinely contributing to the companies they represent.
During his appearance on CNBC, Cohen struggled at times to respond to Sorkin’s inquiries about how GameStop could secure the funds necessary for the acquisition, given the stark difference in market capitalizations—GameStop’s being around $11.31 billion compared to eBay’s $49 billion.
Breaking down the situation, Sorkin suggested that GameStop’s balance sheet included about $9 billion in assets. He speculated that if GameStop could monetize all their stock, it might generate around $20 billion. After this, he mentioned another potential source of funding, which would add up to around $40 billion, still needing clarification on the final figure.
In response, Cohen was nonchalant, with a simple, “Well, let’s see what happens.” Sorkin persisted, wanting clarity on the remaining funds. Cohen concluded, “Half cash and half stock.”
