GameStop CEO Ryan Cohen recently appeared on Bloomberg TV, discussing his proposed acquisition of eBay with Ed Ludlow on Bloomberg Tech, but refusing to give key specific details. He did address the company’s recent, higher-than-expected earnings, despite the numerous GameStop store shutdowns, and made it clear that he wasn’t exactly happy with how folks have talked down on the business in recent years.
Of course, it’s worth noting that GameStop’s longevity has long been a question in the industry, and to its credit, it has survived the transition from physical to digital media. It is unknown if its past or current business model could survive when PlayStation ends disc production in January 2028, not to mention competitors like Xbox likely following suit. However, part of GameStop’s business model includes acquiring eBay.
GameStop Wants to Acquire eBay “One Way Or Another”
In his Bloomberg Tech appearance, Cohen was asked if he was prepared to raise his bid for the acquisition of eBay. He had previously discussed how he wouldn’t give specific details about his business plans because of competitors watching, which is fair enough, and he did not outright answer the question. However, he did issue a new statement on GameStop’s plans to acquire eBay:
“We’re coming for eBay one way or another.”
It remains to be seen how Cohen intends to pull this off, but it’s clear he has not shied away from the subject. As of this writing, GameStop’s market cap is 9.9 million, while eBay’s market cap is 49 million—a fact many pundits have drawn attention to. Still, Cohen’s original and unsolicited bid for eBay was roughly $56 million, or roughly $125 per share. The plan, as announced, was a 50/50 mix of cash and GameStop stock, as well as financing from secure lenders. GameStop’s bid was outright rejected by eBay’s board, which called it “neither credible nor attractive.”
Scratch & Peek
Identify the cover art while scratching off as little foil as
possible.
Cohen believes that GameStop and eBay could become a combined company worth $1 trillion, and as such, criticized the current board of eBay’s management as complacent. Combined, he believes the companies could dominate a digital marketplace for video game items and collectibles—something that has only grown more popular within the industry as a whole, especially as it represents physical items and ownership in an increasingly digital space. GameStop’s revenue is reportedly 42% from collectibles, and anyone who has stepped inside a brick-and-mortar GameStop store is certainly familiar with that.
One idea that Cohen has discussed as a direction for the company is using GameStop’s remaining physical locations to serve as authentication centers for Pokemon trading cards, as well as other highly valued collectible cards. That said, it’s worth noting many have criticized GameStop for charging more than the recommended price on popular Pokemon card collectibles, so that’s something any collector may want ot keep in mind.
When eBay rejected the original bid, it also highlighted that such an acquisition would come with tons of financing uncertainty, operational risks, and potential issues with GameStop’s management itself. As such, it’s uncertain if and when this deal could be inked, but GameStop CEO Ryan Cohen doesn’t appear to be letting it go.