Cohen Escalates eBay Takeover Bid

Ryan Cohen, known for transforming Chewy and orchestrating GameStop's meme-stock revival, is pursuing an audacious takeover attempt of eBay. GameStop has nearly doubled its stake in eBay, now holding 9.8% of the company's shares. This escalation follows eBay's board swiftly rejecting an unsolicited $57 billion cash-and-stock proposal earlier this year, deeming it "neither credible nor attractive."

Cohen appears determined to force the issue, expanding his advisory team and initiating discussions with eBay's largest institutional shareholders. This strategy mirrors activist investing tactics, aiming to pressure the marketplace directly. GameStop's increased ownership positions it as a major shareholder, granting Cohen substantial influence.

The proposed merger would offer eBay shareholders a mix of cash and GameStop shares. Cohen plans to contribute approximately $500 million of his capital and would lead the combined entity as chief executive. However, a key obstacle remains the proposal's financing, which relies on a $20 billion commitment contingent on the merged business achieving investment-grade credit status.