Ryan Cohen Plans Hostile $56B Takeover Bid After eBay Board Rejection
GME•GameStop CEO Ryan Cohen is preparing to launch a hostile takeover of eBay after its board rejected his unsolicited $56B cash-and-stock offer valued at $125 per share. The company has built a 7.8% eBay stake and plans a direct tender offer while targeting $2B in cost cuts and rapid deleveraging.
1. Hostile $56B Takeover Proposal
GameStop CEO Ryan Cohen formally proposed a $56B cash-and-stock takeover of eBay at $125 per share, which the eBay board deemed neither credible nor attractive and rejected outright. Facing firm resistance, Cohen is now preparing a hostile bid to bypass the board.
2. 7.8% Stake and Tender Offer Strategy
GameStop has built a 7.8% equity stake in eBay, positioning itself to initiate a direct tender offer to shareholders. This move would allow Cohen to appeal directly to investors without board approval.
3. $2B Cost Cuts and E-Commerce Focus
Cohen plans to extract $2B in annual cost savings through rapid deleveraging and operational cuts at eBay. He views the e-commerce business as core to his expertise, drawing parallels to his successful transformation of Chewy.
