GameStop's Cohen Offers $56B for eBay, Then Sells Collectibles to Fund Deal
Breaking: GameStop Launches $56 Billion Hostile Bid for eBay
GameStop Corp. announced an unsolicited offer to acquire eBay Inc. for approximately $56 billion, sending shockwaves through the e-commerce sector. The bid values eBay at a premium over its current $46 billion market capitalization, despite GameStop's own market cap of just $11 billion.
The deal structure proposed by GameStop CEO Ryan Cohen is half cash and half stock, but the financing details remain murky. GameStop holds $9 billion in cash reserves and has secured a $20 billion financing commitment from TD Securities, leaving a $16 billion gap that Cohen has not explained clearly.
Evasive CNBC Interview Draws Scrutiny
In a CNBC interview widely described as ‘bizarre’ and ‘evasive,’ Cohen sidestepped direct questions about how GameStop would close the funding shortfall. When asked repeatedly by co-anchor Becky Quick, he replied: “It’s on our website. Half cash, half stock, but the details are on our website.”
Quick pressed: “That’s a pretty straightforward question. I don’t get it. Where’s the rest of the money coming from?” Cohen responded: “I don’t understand your question. We’re offering half cash, half stock. We have the ability to issue stock in order to get the deal done, but the full details of the offer are on our website.”
The interview, which media outlets have called ‘dizzying’ and compared to an SNL sketch, left analysts unconvinced. Cohen did not provide a concrete plan for the missing $16 billion.
Cohen's X Post: ‘Selling Stuff on eBay to Pay for eBay’
The following day, Cohen posted on X: “I’m selling stuff on eBay to pay for eBay,” before later claiming his eBay account was suspended. The account remains active, featuring listings such as baseball trading cards, a $9,000 first-generation Apple iPhone, and other collectibles.
Each listing includes a signed copy of Cohen’s proposal letter to eBay, drawing attention to the unconventional bid. GameStop has also built a 5% stake in eBay, according to regulatory filings.
Background: A Closer Look at the Financing Gap
GameStop’s $56 billion offer consists of half cash ($28 billion) and half stock ($28 billion). The company’s $9 billion cash reserves plus the $20 billion TD Securities commitment total only $29 billion, not the required $28 billion cash half—there is a $1 billion shortfall even before the stock portion.
Moreover, issuing $28 billion in new stock would massively dilute existing shareholders. Cohen’s vague reference to ‘ability to issue stock’ does not address how GameStop will satisfy eBay’s board or shareholders. Analysts question whether the bid is serious or a publicity stunt.
What This Means: Collectibles Focus and Strategic Ambitions
Cohen argued during the CNBC interview that eBay has “the second largest e-commerce franchise, and there’s a big opportunity to do something much larger and pull costs out of the system, as well as accelerate revenue growth.” He emphasized a “focus on collectibles can be a much larger business.”
EBay confirmed receipt of the offer in a press release, stating its board will “carefully and thoroughly” consider the proposal, declining further comment. The deal would face significant antitrust scrutiny and integration challenges, given GameStop’s much smaller size.
If successful, Cohen’s plan could transform eBay into a collectibles powerhouse under entrepreneurial leadership. But the financing gap and Cohen’s evasive public stance raise serious doubts. The X post about selling personal items on eBay adds a layer of eccentricity to an already unprecedented takeover attempt.