- Ryan Cohen remains committed to acquiring eBay despite the board's rejection, potentially taking the bid directly to shareholders.
- GameStop has increased its stake in eBay to about 7.8%, signaling ongoing activist pressure.
- Cohen argues eBay is "underearning" and can unlock value through cost cuts and synergies in collectibles and e-commerce.
Cohen's Persistent Pursuit
Ryan Cohen is not backing down. After eBay's board dismissed GameStop's takeover offer as "not credible," Cohen told Barron's he remains committed to the deal and may bring the bid directly to eBay shareholders. His strategy hinges on unlocking shareholder value through aggressive cost cuts—billions in savings, he claims—and leveraging synergies between GameStop's collectibles expertise and eBay's e-commerce platform.
GameStop has quietly built a 7.8% stake in eBay as of late May, reinforcing Cohen's activist posture. The rejection, he argues, is a governance failure, not a financial one. "Shareholders should have a say," Cohen said, framing the dispute as a battle over strategy rather than just financing.
eBay's Board Digs In
eBay's board rejected the offer on grounds of financing, strategic fit, governance, and the combined debt load. The company has not publicly responded to Cohen's latest comments. Reached for comment, eBay declined to elaborate beyond its initial statement. The standoff echoes classic activist campaigns where boards reject unsolicited bids, only to face prolonged pressure.
Context and Implications
Cohen's push comes amid a broader wave of activist investors targeting mature e-commerce platforms for operational efficiency. eBay, with its asset-light model and substantial overhead, is seen as ripe for cost-cutting. If Cohen can address financing and integration concerns, the deal could attract investors seeking scale in online marketplaces. However, without a deal, Cohen may escalate to a proxy fight, a path he has hinted at.
Correction: An earlier version of this article misstated GameStop's stake as 7.5%. It is 7.8%.