GameStop Chairman Proposes $56 Billion eBay Takeover, Citing Efficiencies and Corporate Waste

GameStop Chairman Ryan Cohen has unveiled a proposed $56 billion acquisition of eBay, offering $125 per share in a half-cash, half-stock deal that he argues would dramatically improve the online marketplace’s profitability.

Cohen, speaking on a financial program, outlined a vision to cut what he called rampant spending at eBay, including $2.5 billion annually on sales and marketing. “We can make that much more efficient,” he said, projecting that eBay’s earnings could double. In simplified terms, he suggested the combined business could grow significantly — from roughly 40,000 to 80,000, reaching as high as 90,000.

The financing, according to Cohen, includes a “$20 billion highly committed letter” plus $9 billion in cash on GameStop’s balance sheet. Outside investors may also participate, though he declined to provide further details.

When asked why eBay shareholders would support the deal, Cohen was blunt about the current management. “They pay themselves millions of dollars and never buy back their own stock,” he said. “They’ve done nothing innovative at all.” He contrasted eBay’s board compensation — which he claimed averages $3.15 million per director annually — with GameStop’s board, which he said takes zero fees and has invested personal capital in the company.

Cohen dismissed skepticism from financial media and Wall Street analysts, noting that experts had repeatedly predicted GameStop’s bankruptcy. “They weren’t wrong — old management would have continued running the company,” he said. “Then we wouldn’t be having this conversation.”

Regarding a critical report that described his recent media appearance as “disastrous” and showing “contempt for legacy financial institutional investors,” Cohen laughed it off. “Can’t take it too seriously,” he said. “It’s okay.”

He also pointed to broader issues in American capitalism, criticizing boards that collect millions while selling hundreds of millions in stock. “There is a deep wrong with the system that exists,” he said. “That’s corporate America.”

Cohen expressed confidence the deal would be accretive to earnings per share for both companies’ shareholders, driven by cost cuts at eBay, which he described as an “asset-light business” with $5.6 billion in operating expenses on $11 billion in revenue.