Ryan Cohen Eyes Hostile $56B eBay Takeover with 7.8% Stake
EBAY•GameStop CEO Ryan Cohen intensified his pursuit of eBay with a $56 billion proposal at $125 per share after its board rejected the bid, and has amassed a 7.8% stake. He plans a direct tender offer to shareholders and aims to cut $2 billion in costs.
1. Hostile Takeover Escalation
GameStop CEO Ryan Cohen formally offered $56 billion in cash and stock at $125 per share to acquire eBay, but its board rejected the proposal as unattractive. This rebuff has prompted Cohen to escalate his tactics beyond traditional negotiations.
2. Direct Tender Offer Plan
Cohen is evaluating a direct-to-shareholder tender offer designed to bypass eBay’s board and appeal directly to existing investors. The move would leverage his 7.8% equity position to rally shareholder support.
3. Stake and Turnaround Strategy
Having built a 7.8% stake in eBay, Cohen intends to extract $2 billion in cost savings through accelerated deleveraging and operational efficiencies. He believes his e-commerce expertise will drive improved profitability and management performance.
