- Ryan Cohen's ~$56 billion bid for eBay was rejected by the board as "not credible or attractive."
- Cohen criticized eBay's cost structure and signaled he may take the offer directly to shareholders.
- Financing and strategic fit are major hurdles, with analysts skeptical about synergies.
Ryan Cohen, the meme-stock kingpin behind GameStop, is escalating his push to acquire eBay after his roughly $56 billion offer was dismissed by the company's board. In an interview, Cohen described eBay as "literally obese" and "extremely overweight," arguing that massive cost-cutting opportunities exist. The bid, valued at $125 per share in a mix of cash and stock, was rejected as "not credible or attractive," according to a person familiar with the matter. Cohen, however, said the rejection was expected and vowed to "do everything" needed to pursue a deal.
The proposal would leverage GameStop's retail footprint for authentication and fulfillment, but analysts question the strategic logic. Financing remains a key concern: TD Securities reportedly provided a non-binding letter contingent on investment-grade status, and Moody's flagged potential ratings pressure. "The synergies are unclear, and the debt load would be significant," said one analyst.
Cohen indicated he may take the bid directly to eBay shareholders if the board doesn't engage. eBay has declined further comment. GameStop's market cap is a fraction of eBay's, adding to skepticism. Without a deal, Cohen's move may be seen as opportunistic amid GameStop's cash pile. We have reached out to both companies for additional comment. A correction: earlier reports misstated the bid's cash component as $50 per share; it is $125 total.