eBay Repels $125-Per-Share Hostile Bid After Cohen Amasses 5% Stake
EBAY•eBay posted 19% revenue growth and 18% GMV increase year-over-year in its latest quarter, serving 136 million buyers. The company rejected Ryan Cohen’s unsolicited $125-per-share bid and 5% stake, setting the stage for a hostile takeover contest that could drive valuation multiples higher.
1. Strong Quarterly Results
eBay reported gross merchandise volume increased 18% year-over-year and revenue rose 19% in the latest quarter while serving 136 million buyers. The stock has gained 30% year-to-date, trades at 18 times forward earnings and yields a 1.1% dividend.
2. Hostile Bid and 5% Stake
GameStop CEO Ryan Cohen has built a 5% stake in eBay and proposed an unsolicited $125-per-share offer valuing the company at over four times GameStop’s market capitalization. eBay’s board rejected the bid as neither credible nor attractive and declined to enter discussions.
3. Governance Battle and Next Steps
Cohen has criticized eBay’s governance standards and highlighted $144 million in CEO compensation over six years. With plans to take the proposal directly to shareholders, eBay faces a potential proxy fight and must evaluate defense measures to protect shareholder value.
