GameStop Quietly Builds Nearly 10% Stake in eBay as Cohen Pushes for Acquisition
Miles Bennett
GameStop CEO Ryan Cohen has nearly doubled his company's eBay stake to close to 10%, pressing ahead with a takeover bid even after the board rejected his $56 billion offer — the showdown is now heading toward a shareholder vote.
What has Cohen actually done?
GameStop has raised its eBay stake to nearly 10%, roughly double the previous level.
This means → Cohen is not just talking; he is locking himself into this deal with real capital.
In May, he submitted a $56 billion cash-and-stock offer. eBay's board rejected it.
The board cited three concerns: questionable financing, excessive post-merger leverage, and Cohen's personal incentive structure.
How is Cohen responding to the rejection?
He withdrew a bonus plan that could have paid him up to $35 billion — the exact point eBay's board attacked.
In plain terms = the board called his incentive plan unreasonable, so he removed the biggest sticking point to clear the path.
He has reassembled the same legal and PR team that helped him take control of GameStop.
Cohen is already contacting major eBay shareholders to gauge support, and says he does "not rule out" a direct tender offer.
How is eBay actually performing?
Over the past five years, eBay's operating expenses rose 26% to $5.6 billion, while operating profit fell 14% to $2.2 billion.
This means → the company is spending more and earning less — the core of Cohen's case for aggressive cost cuts.
On the other hand: under CEO Jamie Iannone's six-year tenure, eBay's stock has more than tripled, with market cap near an all-time high of roughly $50 billion.
Some analysts see improving marketplace growth and prudent capital allocation — making the "eBay needs a takeover fix" narrative far from settled.
What is Cohen's plan for eBay?
The blueprint centers on aggressive cost reduction: slashing operating expenses to levels comparable to Chewy, the pet e-commerce firm he founded, and rival Wayfair.
In plain terms = Cohen believes eBay spends too much and runs too inefficiently; he wants to turn it into a lean operation.
He wrote to CEO Iannone requesting a meeting. Iannone refused to sit down with a man angling for his job.
Cohen's own words: "This is essentially shareholders voting on who they want to run the company — me or the current CEO."
Where is this standoff heading?
Cohen says he is keeping "all options" open, including bypassing the board with a direct offer to shareholders.
This reflects the same playbook he used to take over GameStop: build a stake, apply pressure, let shareholders decide.
The key test is eBay's annual shareholder meeting — whether Cohen can rally enough support before that date will determine the outcome of this fight.
Content is for reference only, not financial advice.