One day after eBay Inc. (NASDAQ:EBAY) dismissed the $56 billion takeover proposal as “neither credible nor attractive,” GameStop Corp. (NYSE:GME) CEO Ryan Cohen fired back in a letter to Chairman Paul Pressler and in an interview with Piers Morgan, criticizing management and signaling he may intensify his efforts.
Cohen Challenges eBay Leadership After Rejected Buyout Offer
In the letter, Cohen argued that shareholders — not the board — should decide the fate of his $125-per-share bid, Reuters reported.
“They should not dismiss a $125 per share proposal without engaging on its substance,” Cohen wrote, adding that eBay shareholders “deserve the opportunity to evaluate” the economics of the deal.
Ryan Cohen Positions Himself As Shareholder-Focused Alternative
Cohen, who built a loyal following among retail investors through his leadership at GameStop, contrasted his compensation structure with that of eBay CEO Jamie Iannone during his tenure.
The GameStop CEO said he receives no salary, cash bonuses or golden parachute and has personally invested $128 million in his company’s stock since 2020.
He also criticized Iannone’s reported $144 million compensation package over six years.
Cohen Defends eBay Buyout Financing Plan Amid Criticism
In his interview with Morgan, Cohen called eBay “an asset” that is “run by a bunch of losers.”
Morgan pressedCohen on skepticism surrounding the financing of his proposed eBay takeover, highlighting criticism from investors, analysts and Michael Burry.
Cohen defended the bid as a simple half-cash, half-stock structure, saying GameStop has $9 billion in cash and that bankers are confident it can raise another $20 billion.
He argued eBay shareholders would retain ownership while gaining stronger leadership under what he called an “owner-operator” model.
Cohen dismissed criticism that the deal’s math was unclear, suggesting skeptics failed to understand the proposal.
Addressing Burry’s concerns, Cohen acknowledged the deal would involve leverage but said he does not plan to run a highly leveraged business and remains confident he could cut at least $2 billion in costs at eBay.
Major Financing And Governance Hurdles Remain
Despite Cohen’s aggressive rhetoric, analysts remain skeptical. GameStop’s market value is about $10 billion, significantly smaller than eBay’s roughly $50 billion valuation, raising concerns over financing and deal feasibility.
GameStop currently owns about 5% of eBay, limiting Cohen’s immediate influence unless he can win broader shareholder backing or expand his stake.
Price Action: eBay shares closed Wednesday up 2.36% at $113.01 and edged another 0.14% higher to $113.17 in after-hours trading, while GameStop fell 1.3% to $22.08 and slipped an additional 0.045% to $22.07 after the bell, according to Benzinga Pro.
According to Benzinga Edge Rankings, GameStop ranks in the 74th percentile for Growth. It has negative performance across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Sergei Elagin on Shutterstock.com
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