GameStop CEO Ryan Cohen said he intends to acquire eBay despite an initial takeover bid being rejected by the company.
The pursuit represents a massive strategic shift for GameStop, as it attempts to move beyond its traditional retail roots into a larger e-commerce ecosystem. The acquisition would fundamentally change the scale of the company's operations.
During an interview on Bloomberg Television’s “Bloomberg Tech” program, Cohen said, “We’re coming for eBay one way or another.” He said that he is not going to back down from the pursuit [1, 2].
This follows a $56 billion [3] initial offer that eBay rejected in May 2024 [4]. Despite the rejection, GameStop has increased its ownership stake in eBay to nearly 10% [5].
Cohen said he would not say whether he would increase the original offer amount during the interview [1]. The scale of the bid is significant, as eBay’s valuation is roughly five times GameStop’s market value [6].
Cohen said the pursuit is intended to expand GameStop's business capabilities [7]. While some reports suggested Cohen might consider pulling the bid, he has publicly doubled down on his intent to acquire the company [8].
““We’re coming for eBay one way or another.””
The bid for eBay is an aggressive attempt by GameStop to pivot its business model. By targeting a company five times its own market value, GameStop is attempting a 'leapfrog' growth strategy rather than incremental expansion. However, the disparity in valuation and the previous rejection suggest that a successful acquisition would likely require a significantly higher bid or a hostile takeover attempt through increased share accumulation.
