GameStop CEO Ryan Cohen pushed a $55 billion cash-and-stock bid for eBay earlier this week, but the online marketplace's board swiftly rejected the offer. Chairman Paul Pressler dismissed it as "neither credible nor attractive," citing concerns about the debt-heavy financing structure. Cohen fired back by condemning eBay's leadership as "a bunch of losers" and accusing the board of blocking the deal to safeguard $4 million in annual director fees.
The $55 Billion Package
Cohen's proposal split the payment evenly between cash and GameStop stock, leaning on the company's $9.4 billion cash reserves and up to $20 billion in debt financing arranged by TD Securities. He maintained the bid represented a 46% premium for eBay shareholders, arguing it would unlock major value through cost cuts. The board rejected those arguments, insisting the financing assumptions were unrealistic given current market conditions.
Outdated Platform Claims
Cohen publicly slammed eBay's technological stagnation, noting the website "still looks like it did in 1995" despite high operating expenses. He claimed the company could slash $2 billion in annual costs and expand into live commerce, but the board never engaged with these specific proposals. His criticism focused on what he called "perverse financial incentives" keeping leadership from modernizing the platform.
Investor Retreat
Short-term volatility followed Cohen's CNBC appearance where he struggled to explain the bid's complex financing math. Notably, investor Michael Burry sold his entire GameStop stake immediately after the interview. Burry's move highlighted skepticism about the deal's feasibility among major shareholders, though he provided no public explanation for the timing.
Account Suspension Incident
During the bid process, Cohen reported his personal eBay account was suspended without warning. The platform later reinstated access but still blocks him from listing items—a detail Cohen shared publicly. The company hasn't clarified why a prominent CEO's account received this treatment amid active takeover discussions.
Betting Market Odds
Polymarket traders currently assign just a 16% probability the deal closes, pricing it as a long shot. Cohen openly compared this figure to Donald Trump's 2016 presidential campaign odds during a recent interview. The betting market's skepticism suggests investors see little chance of the board reconsidering its stance.
The next significant update will likely come from Polymarket's real-time odds as traders react to regulatory filings or any surprise moves from either company.
