GameStop CEO Ryan Cohen is reportedly weighing a change in strategy regarding the company’s $56 billion acquisition bid for eBay. The move follows a formal rejection from eBay, which characterized the offer as “neither credible nor attractive.”
Quick Facts
- Current Stake: GameStop maintains a 9.8% ownership stake in eBay.
- Proposed Funding: Cohen previously outlined a plan involving $20 billion in debt financing from TD Bank and $9 billion in cash reserves, with the remainder sourced from external investors.
- Shift in Strategy: Reports suggest GameStop is now exploring a potential partnership with eBay focused on selling physical collectibles, such as trading cards, and a marketplace for digital gaming items.
Background on the Bid
The acquisition attempt was initially driven by CEO Ryan Cohen’s vision to transform GameStop into a broader reseller of digital gaming items. Cohen had proposed purchasing eBay shares at $125 each, split between 50% cash and 50% GameStop stock. As part of this transition, Cohen had previously planned to implement his existing GameStop business model of cost-cutting and expansion into live commerce, similar to eBay’s current 'eBay Live' feature.
What Remains Unknown
While reports indicate that Cohen is evaluating alternatives to the full acquisition, GameStop has declined to provide official comment on its future plans. The specific mechanics of a partnership—and how the company intends to utilize its remaining cash and debt financing options—have not been disclosed. Additionally, the original performance-based pay package for Cohen, which was estimated at $35 billion, has been officially withdrawn by the company.