He criticized eBay's leadership, outlined a turnaround strategy, and defended GameStop against ongoing “meme stock” skepticism.
- On the “All In” podcast, Ryan Cohen said eBay leaders are resisting his $56 billion takeover bid to maintain control.
- Cohen dismissed financing concerns, saying he is putting $500 million of his own money on the line.
- He sees a strong strategic fit between GameStop and eBay through collectibles and the resale market.
GameStop (GME) CEO Ryan Cohen said he is committing $500 million of his personal funds to the eBay (EBAY) takeover bid, while blasting the company's current leadership as overpaid insiders who have never taken a real financial risk.
The half-billion-dollar commitment highlights Cohen's serious resolve to break through gridlock, even as eBay's management continues to push back against the offer.
GME CEO Contrasts Personal Investment With EBAY Management
Speaking at the “All In” podcast, Cohen said he has not pulled a single dollar out of GameStop and has instead been pouring his own capital into the business for years, a stark contrast, he argues, to the existing eBay management team and board.
“And you've got a board that's making hundreds of thousands of dollars a year. They don't buy stock with their own money. They end up showing up to a handful of board meetings and they're making a fortune. You've got a management team that is grossly overpaid with taking zero risk,” said Cohen.
Adding fuel to the fire, Cohen revealed that eBay's current CEO stands to walk away with more than $100 million in severance if removed, a golden parachute he finds difficult to justify given the company's performance history.
He said he understands why eBay's leadership is resisting the takeover, as they are benefiting from the current situation and do not want to give up control. He dismissed concerns about financing, explaining that the deal would be funded using eBay's own balance sheet.
The video game retailer’s $56 billion acquisition offer was rejected by eBay’s management.
GameStop stock edged 0.9% higher and eBay stock was up 0.4% overnight, heading into Wednesday.
Why Cohen Believes GME And EBAY Are A Natural Fit
Cohen believes GameStop is a fundamentally stronger business today than it has ever been, and he has backed that conviction with years of personal investment into the company. He argued that the media's insistence on labeling it a “meme stock” is not only wrong but willfully so driven by a reluctance to admit error rather than any honest assessment of the business.
“I found it fascinating that everybody hated GameStop. The general consensus has been like GameStop was going out of business. It was basically shorted to oblivion”.
He added that GameStop's expansion into collectibles has given him a greater appreciation for eBay. In his view, the two companies fit well together because both serve collectors and the resale market. He said GameStop provides services through its stores, while eBay offers similar value online, helping consumers buy, sell and access liquidity in the secondary market.
“There's there's so many aspects of the business that are similar except that eBay is global and has significant scale and frankly, it's a business that I understand a lot better than physical retail. And so when you look at how much the businesses together make sense and then you look at the fact that it's within my circle of competence, I can't stop thinking about it.”
Ryan Cohen said eBay helped pioneer the online marketplace model, similar to how Amazon built its business by combining third-party sellers with its own inventory. However, he argued that eBay has not kept pace with the overall growth of e-commerce.
Cohen: eBay Has Lost Ground In E-Commerce
He said that while eBay remains profitable and has maintained its revenue, it has lost market share to newer competitors, including specialized online retailers, live-shopping platforms, Shopify-powered stores, and social commerce businesses. According to Cohen, eBay's growth has largely stalled in recent years, while its operating costs have ballooned.
“I mean if you just look at how they've done in the past since COVID every important metric is down GMV is down, active users is down by 30 million. Operating earnings is down. Revenue now is you know basically essentially break even. It's up a few points and operating expenses is up significantly”.
GME CEO Outlines Three-Part Turnaround Strategy
Cohen outlined a three-part plan for eBay: cut about $2 billion in costs to boost profits, expand its underdeveloped live-commerce business by leveraging GameStop's store network and logistics capabilities, and grow beyond physical collectibles into digital collectibles to create new revenue opportunities.
What GME Retail Traders Are Saying
On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory with a 57% rise in message volume in 24 hours.
A user said, “$GME RC was cocky and overstimated his abilities and popularity. Ebay offer was trashed. Shareholders had issue with his compensation. Warrants are dying and our share price is lower than ever. Lets see what he will do next to fix all this. So far it seems like hes really trying to shake things up.”
Another user said, “well well well. Looks like Ryan is going to shake things up like all us longs knew would happen at this SP level. Man, what a time to be a GameStop long. This stock is going to change lives.”
So far this year, while GME stock gained 4%, EBAY stock has surged 25%.
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