Ryan Cohen Threatens $55.5B Hostile Takeover of eBay After $125 Bid Rejection
GME•GameStop CEO Ryan Cohen has threatened a hostile takeover of eBay after its board rejected his unsolicited $125-per-share, mixed cash-and-stock offer valuing the company at $55.5 billion. GameStop has built a 5% eBay stake and lined up $20 billion in financing despite its own $10.7 billion market capitalization.
1. Hostile Takeover Move
GameStop CEO Ryan Cohen renewed his threat to pursue a hostile takeover of eBay after the company's board dismissed his unsolicited acquisition proposal. Cohen intends to bypass management and take the offer directly to eBay shareholders.
2. Offer Terms and Financing
The proposal valued eBay at $55.5 billion, comprised of half cash and half GameStop stock, and followed GameStop accumulating a 5% stake in eBay. Cohen has secured $20 billion in financing to support the deal despite GameStop's own $10.7 billion market capitalization.
3. eBay Board's Response and Governance Issues
eBay’s board deemed the $125-per-share proposal neither credible nor attractive, citing concerns over financing structure, potential debt burden, operational risks, and governance. Cohen criticized eBay’s leadership compensation, highlighting $144 million paid to CEO Jamie Iannone during a period of declining active buyers.
