{"id":9516,"date":"2026-06-28T01:35:17","date_gmt":"2026-06-28T01:35:17","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=9516"},"modified":"2026-06-28T01:35:17","modified_gmt":"2026-06-28T01:35:17","slug":"ryan-cohen-passes-on-gamestop-payday-to-keep-pushing-one-acquisition","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=9516","title":{"rendered":"Ryan Cohen passes on GameStop payday to keep pushing one acquisition"},"content":{"rendered":"

<\/p>\n

GameStop (GME) tried to buy eBay once already, and the answer was no. That rejection would have ended most takeover attempts. Cohen is not backing down.<\/p>\n

Instead, GameStop spent the following weeks building a bigger position and a stronger balance sheet, the opposite of what a retreat looks like.<\/p>\n

GameStop\u2019s first eBay offer crashed into a wall of skepticism<\/h2>\n

In May, GameStop submitted a non-binding proposal to acquire all of eBay [EBAY] at $125 per share in cash and stock, according to a filing on GameStop\u2019s investor relations site.<\/p>\n

The offer represented a 46% premium to eBay\u2019s stock price before GameStop began buying shares, the filing states.<\/p>\n

GameStop had already built a 5% stake in eBay through stock and derivatives by the time it went public with the bid.<\/p>\n

Cohen\u2019s pitch centered on GameStop\u2019s 1,600 retail stores, which he argued could serve as a national network for authenticating and fulfilling eBay orders, according to CNBC.<\/p>\n

eBay\u2019s board rejected the proposal nine days later, calling it \u201cneither credible nor attractive\u201d in a letter from chairman Paul Pressler.<\/p>\n

\n

GameStop has raised its eBay stake to 7.8% and projects adjusted EBITDA above $600 million for fiscal 2027, up from $345.4 million.<\/p>\n

Michael M&period; Santiago &sol; Getty Images<\/p>\n<\/figcaption><\/figure>\n

The board cited uncertainty about how GameStop would finance a deal worth roughly $55 billion, as well as concerns about combining the two companies\u2019 operations.<\/p>\n

Cohen struggled to clearly explain the financing plan in a televised interview that followed, which did little to ease Wall Street\u2019s doubts.<\/p>\n

eBay, for its part, said in its rejection letter that it had \u201csharpened its strategic focus\u201d under existing management and saw no need for a buyer.<\/p>\n

GameStop is answering rejection with bigger bets, not retreat<\/h2>\n

Rather than walk away, Cohen has kept buying. GameStop\u2019s economic stake in eBay has grown to 7.8% through additional options trading, according to a securities filing.<\/p>\n

Cohen told Barron\u2019s he intends to own the stock for the long term, regardless of how the board feels about a deal.<\/p>\n

GameStop also gave Wall Street a reason to take the pursuit seriously. The company now projects adjusted EBITDA above $600 million for the fiscal year ending January 2027, nearly double the $345.4 million it reported in fiscal 2025.<\/p>\n

Shares rose almost 3% in after-hours trading on Friday.<\/p>\n

Related: AMC makes bold call that sends its stock crashing<\/strong><\/p>\n

Cohen also gave up a performance-based pay package tied to GameStop\u2019s results, according to the same report, choosing instead to keep his focus on the eBay pursuit.<\/p>\n

For a CEO who already holds a large equity stake, the move reads less as sacrifice and more as a signal about where he thinks the real value sits.<\/p>\n

eBay is still nearly five times GameStop\u2019s size<\/h2>\n

The math has not gotten easier. At the time of the rejection, eBay carried a market value near $48 billion, while GameStop\u2019s was roughly $11 billion, according to CNN.<\/p>\n

A stronger earnings outlook helps GameStop\u2019s credibility, but it does not close a $38 billion gap on its own.<\/p>\n

GameStop\u2019s original financing plan leaned on roughly $9.4 billion in cash and liquid assets, plus up to $20 billion in third-party financing.<\/p>\n

That structure left several analysts unconvinced the first time around, and nothing in the company\u2019s recent guidance changes the size of the gap it still needs to close.<\/p>\n

eBay\u2019s board has also pointed to its own turnaround as a reason to stay independent. eBay shares had already gained 24% on the year by the time of the rejection, giving the board a stronger argument for staying the course than a struggling company would have.<\/p>\n

More Retail:<\/strong><\/p>\n

    \n
  • Closed Rite Aid stores get surprising retail replacement<\/strong><\/li>\n
  • Outdoor retail giant closes 59 stores in Chapter 11 bankruptcy<\/strong><\/li>\n
  • Luxury retail chain wins court approval, exits bankruptcy<\/strong><\/li>\n<\/ul>\n

    Real change or just for show?<\/h2>\n

    What began as an unsolicited takeover bid has evolved into a crucial test of GameStop’s post-meme transformation.<\/p>\n

    Wall Street is watching closely to see if the company’s recent overhaul represents deep, durable restructuring or merely cosmetic damage control.<\/p>\n

    Stronger earnings guidance buys Ryan Cohen more time and credibility with investors, but it does not actually buy eBay.<\/p>\n

    The next definitive test will be whether GameStop can return with a financing structure solid enough to convince its board to stop calling the deal unrealistic, or if this instead devolves into a multi-year stake-building campaign with no clear endpoint.<\/p>\n

    Related: Bed Bath & Beyond bets $53 million on beating Zillow, Redfin<\/strong><\/p>\n

    #Ryan #Cohen #passes #GameStop #payday #pushing #acquisition<\/p>\n","protected":false},"excerpt":{"rendered":"

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