eBay has permanently disabled the account belonging to GameStop CEO Ryan Cohen after he posted roughly 25 personal items for auction on the marketplace, Cohen said in a notice he shared publicly. eBay told Cohen the action was taken because of "activity that we believe was putting the eBay community at risk," according to the message he posted.
Cohen framed the listings as a tongue-in-cheek tactic, describing them as "selling stuff on eBay to pay for eBay." The auction lot included a variety of items tied to GameStop and gaming culture - store signage, video games, a carpet square and collectible pieces - that attracted tens of thousands of dollars in bids before eBay removed his account. A GameStop-branded mug drew more than $3,000 in competitive bids, while a Master Chief statue accumulated bids in excess of $10,000. Each listing also featured a hand-signed copy of Cohen’s takeover proposal addressed to eBay management.
The account suspension occurred days after GameStop publicly submitted an unsolicited proposal to acquire eBay in a transaction Cohen valued at $56 billion, offering $125 per share in a combination of cash and stock. That proposal stands in stark contrast to GameStop’s own market capitalization, which the filing noted at $11.29 billion.
Investors and analysts have been sharply critical of the approach and the mechanics of the deal. High-profile investor Michael Burry sold his entire GameStop position following the takeover announcement and warned against confusing leverage with innovation, saying, "Never confuse debt for creativity."
GameStop disclosed that it had obtained a $20 billion financing commitment letter from TD Bank. That letter still leaves a material funding shortfall relative to the $56 billion price tag Cohen put forward.
In a recent television interview, Cohen said the acquisition would be financed "half cash and half stock," but he did not fully clarify the financing details when pressed by interviewers Andrew Ross Sorkin and Becky Quick.
Credit ratings agency Moody’s has labeled the proposed deal "credit negative" for eBay, estimating that the transaction would increase eBay’s net debt from about $7 billion to roughly $31 billion if completed, according to the agency’s statement.
Observers have suggested Cohen’s public-facing moves may be intended to leverage GameStop’s meme-stock profile. The argument is straightforward: if the takeover campaigns and associated publicity lift GameStop’s share price, the cash component required to fund the offer could shrink, making the transaction easier to finance.
Separately, eBay’s board is scheduled to convene this week to consider GameStop’s unsolicited offer, a recent report said, citing people familiar with the matter. eBay has not issued a formal response to the takeover proposal or to Cohen’s account suspension.
Cohen has indicated he would pursue a proxy fight for seats on eBay’s board if management rebuffs his proposal. He has pointed to past successes in executing transactions, including the sale of Chewy, the online pet supplies retailer he co-founded, to PetSmart for $3.2 billion in 2017.
As part of the pitch for the acquisition, Cohen has pledged to reduce costs by $2 billion within the first year if the deal moves forward. Investors and market participants will be watching closely for an official reply from eBay and for any escalation in Cohen’s campaign, whether through alternative platforms, additional public actions, or a formal proxy contest.
Clear summary: eBay permanently suspended Ryan Cohen’s account after he auctioned about 25 personal GameStop-related items as part of a publicity effort tied to his unsolicited $56 billion takeover offer. The proposal, which would pay $125 per share in cash and stock, has prompted criticism over its financing and leverage, with rating agencies and investors expressing concern. eBay’s board is set to review the bid, and Cohen has signaled he may pursue a proxy fight if the offer is rejected.