Ryan Cohen’s $55 Billion eBay Bid Dismissed, GameStop Shares Down 22%
eBay rejected Ryan Cohen’s $55 billion unsolicited bid to acquire it, characterizing the financing plan as unviable and “neither credible nor attractive.” GameStop shares have dropped 22% over the past year under Cohen’s executive chairmanship, significantly underperforming eBay’s 63% rally and the S&P 500’s 71% gain.
1. eBay Bid Rejection and Deal Feasibility
eBay rejected the $55 billion offer, labeling it “neither credible nor attractive,” and analysis indicated the financing structure lacked feasibility, likely saddling any merged entity with junk‐credit ratings.
2. Underperformance of GameStop Shares
Under Cohen’s leadership as executive chair since June 2023, GameStop’s shares have fallen 22% while the broader market and eBay stock soared, reflecting continued sales declines and profit gains driven primarily by store closures and workforce reductions.
3. Credibility Concerns Over Cohen’s Strategy
Critics argue Cohen’s high‐profile bids, including a halted attempt at Bed Bath & Beyond, suggest a pattern of media‐focused strategies over substantive business plans, fueling investor skepticism over his governance approach and lack of clear operational disclosures.