GameStop CEO Ryan Cohen has escalated his campaign to acquire eBay, with the struggling video game retailer now holding a 9.8 percent stake in the online marketplace. This significant investment, valued at approximately $5 billion, represents roughly half of GameStop's total market capitalization.
Cohen expressed his intentions during a recent Bloomberg interview, stating, "I'm not going to call my shots, but we're coming for eBay one way or another." He outlined a strategy focused on cost-cutting and layoffs to enhance eBay's profitability, mirroring his approach at GameStop. Cohen also envisions combining the operations of both companies to create a formidable competitor to Amazon in the market for physical goods resellers. Should the merger proceed, Cohen would assume the role of CEO for the new eBay GameStop entity. eBay has previously dismissed the proposed deal as "neither credible nor attractive."
Despite skepticism from the business community regarding the financial viability of his plan, Cohen remains resolute. He stated on Bloomberg, "My goal? I own a lot of stock and I don’t have any perverse incentive. So it’s to make the business a lot more profitable and to maximize shareholder value." Cohen also highlighted potential growth areas such as live commerce and the development of an in-game visual marketplace.
GameStop's ability to acquire equity in eBay has been bolstered by its meme stock status, which has enabled the company to raise substantial capital through share sales. Cohen appears to be leveraging online communities to build support for a potential acquisition. The notes suggest that if a deal shows signs of viability, Wall Street investors might provide financing. Cohen's pursuit of eBay signifies a potential shift away from GameStop's core identity, with the CEO appearing disengaged from the traditional retail gaming business. This sentiment was evident when he dismissed the significance of Sony's potential discontinuation of PlayStation game discs in future console generations, stating, "It doesn’t matter at all. Software. It mattered in the past. Software today makes up less than 12 percent of the business, and collectibles makes up over half the business. So it’s totally and totally irrelevant."