<\/p>\n
GameStop (GME) tried to buy eBay once already, and the answer was no. That rejection would have ended most takeover attempts. Cohen is not backing down.<\/p>\n
Instead, GameStop spent the following weeks building a bigger position and a stronger balance sheet, the opposite of what a retreat looks like.<\/p>\n
GameStop\u2019s first eBay offer crashed into a wall of skepticism<\/p>\n
In May, GameStop submitted a non-binding proposal to acquire all of eBay [EBAY] at $125 per share in cash and stock, according to a filing on GameStop\u2019s investor relations site.<\/p>\n
The offer represented a 46% premium to eBay\u2019s stock price before GameStop began buying shares, the filing states.<\/p>\n
GameStop had already built a 5% stake in eBay through stock and derivatives by the time it went public with the bid.<\/p>\n
Cohen\u2019s pitch centered on GameStop\u2019s 1,600 retail stores, which he argued could serve as a national network for authenticating and fulfilling eBay orders, according to CNBC.<\/p>\n
eBay\u2019s board rejected the proposal nine days later, calling it \u201cneither credible nor attractive\u201d in a letter from chairman Paul Pressler.<\/p>\n
GameStop has raised its eBay stake to 7.8% and projects adjusted EBITDA above $600 million for fiscal 2027, up from $345.4 million.<\/p>\n
Michael M. Santiago / Getty Images<\/p>\n
The board cited uncertainty about how GameStop would finance a deal worth roughly $55 billion, as well as concerns about combining the two companies\u2019 operations.<\/p>\n
Cohen struggled to clearly explain the financing plan in a televised interview that followed, which did little to ease Wall Street\u2019s doubts.<\/p>\n
eBay, for its part, said in its rejection letter that it had \u201csharpened its strategic focus\u201d under existing management and saw no need for a buyer.<\/p>\n
GameStop is answering rejection with bigger bets, not retreat<\/p>\n
Rather than walk away, Cohen has kept buying. GameStop\u2019s economic stake in eBay has grown to 7.8% through additional options trading, according to a securities filing.<\/p>\n
Cohen told Barron\u2019s he intends to own the stock for the long term, regardless of how the board feels about a deal.<\/p>\n
GameStop also gave Wall Street a reason to take the pursuit seriously. The company now projects adjusted EBITDA above $600 million for the fiscal year ending January 2027, nearly double the $345.4 million it reported in fiscal 2025.<\/p>\n
Shares rose almost 3% in after-hours trading on Friday.<\/p>\n
Related: AMC makes bold call that sends its stock crashing<\/p>\n
Cohen also gave up a performance-based pay package tied to GameStop\u2019s results, according to the same report, choosing instead to keep his focus on the eBay pursuit.<\/p>\n
For a CEO who already holds a large equity stake, the move reads less as sacrifice and more as a signal about where he thinks the real value sits.<\/p>\n
eBay is still nearly five times GameStop\u2019s size<\/p>\n
The math has not gotten easier. At the time of the rejection, eBay carried a market value near $48 billion, while GameStop\u2019s was roughly $11 billion, according to CNN.<\/p>\n
A stronger earnings outlook helps GameStop\u2019s credibility, but it does not close a $38 billion gap on its own.<\/p>\n
GameStop\u2019s original financing plan leaned on roughly $9.4 billion in cash and liquid assets, plus up to $20 billion in third-party financing.<\/p>\n
That structure left several analysts unconvinced the first time around, and nothing in the company\u2019s recent guidance changes the size of the gap it still needs to close.<\/p>\n
eBay\u2019s board has also pointed to its own turnaround as a reason to stay independent. eBay shares had already gained 24% on the year by the time of the rejection, giving the board a stronger argument for staying the course than a struggling company would have.<\/p>\n
More Retail:<\/p>\n
Closed Rite Aid stores get surprising retail replacementOutdoor retail giant closes 59 stores in Chapter 11 bankruptcyLuxury retail chain wins court approval, exits bankruptcyReal change or just for show?<\/p>\n
What began as an unsolicited takeover bid has evolved into a crucial test of GameStop’s post-meme transformation.<\/p>\n
Wall Street is watching closely to see if the company’s recent overhaul represents deep, durable restructuring or merely cosmetic damage control.<\/p>\n
Stronger earnings guidance buys Ryan Cohen more time and credibility with investors, but it does not actually buy eBay.<\/p>\n
The next definitive test will be whether GameStop can return with a financing structure solid enough to convince its board to stop calling the deal unrealistic, or if this instead devolves into a multi-year stake-building campaign with no clear endpoint.<\/p>\n
Related: Bed Bath & Beyond bets $53 million on beating Zillow, Redfin<\/p>\n
#Ryan #Cohen #passes #GameStop #payday #pushing #acquisition<\/p>\n","protected":false},"excerpt":{"rendered":"
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