GameStop chairman Ryan Cohen had his eBay account suspended just two days after the video game retailer launched a $56 billion takeover bid for the online marketplace. The suspension was later reversed, and Cohen's account now shows a 100% positive feedback rating.
Why eBay Suspended the Account
EBay's suspension notice said Cohen's account was 'permanently suspended because of activity that we believe was putting the eBay community at risk.' Cohen had been using the account to auction personal items, including socks and carpet from a GameStop store, in a theatrical move meant to dramatize the acquisition pursuit. The suspension was lifted shortly after, but the episode underscores the tension between the two companies.
The Bid Details
GameStop's offer values eBay at $125 per share, half in cash and half in GameStop stock. That represents a roughly 20% premium to eBay's prior closing level and a 46% premium to its February 4 close. To back the offer, GameStop secured a $20 billion financing letter from TD Bank. But the company's own market value sits near $11 billion, far below the $56 billion target price. GameStop already holds a 5% economic stake in eBay through derivatives and shares.
Cohen argues the combined company could rival Amazon by leveraging GameStop's roughly 1,600 stores as drop-off and authentication points for eBay transactions. That pitch hasn't won over eBay's board, which has so far declined to engage with the offer. Cohen has signaled he's willing to take the proposal directly to shareholders.
Market Reaction
GameStop shares dropped about 10% after the bid was disclosed. Investor Michael Burry, known for his bet against the housing market, sold his entire GameStop stake the day after the offer surfaced.
Next Steps
EBay's board continues to hold out. Whether Cohen can rally enough shareholder support to force a negotiation remains an open question. A direct appeal to eBay investors could be the next move, though no timeline has been set.
