GameStop CEO Ryan Cohen has launched an eBay storefront selling vintage video games, baseball cards, and even a pair of tube socks priced at $14,000, claiming the proceeds will help fund the company's ambitious $55.5bn bid to acquire eBay itself. The move, announced on Tuesday night, underscores Cohen's unconventional approach to corporate dealmaking.
eBay Storefront and Suspension
Cohen posted a link to his eBay storefront on social media, stating, "I'm selling stuff on eBay to pay for eBay." However, his account was temporarily suspended shortly after, though a source familiar with the matter confirmed it was reinstated on Thursday, allowing bidding to resume. As of Thursday afternoon, the highest bids included a pair of GameStop store signs nearing $15,000 with nearly 100 bids, and white Adidas crew socks at just over $14,000.
Other Items on Offer
Additional listings include a painting of Tylee, a toy poodle that inspired Cohen to found online pet retailer Chewy, along with GameStop merchandise such as a hat, mousepad, and mug. Bidding for all items is set to close on 13 May.
Background on Ryan Cohen and GameStop
Cohen became CEO of GameStop in 2020, steering the company into its "meme stock" phase after selling Chewy to PetSmart for over $3bn. On Monday, he announced an unsolicited bid to acquire eBay for $55.5bn, warning that the deal could turn hostile if eBay's board rejects the offer. In a letter to eBay's board, Cohen argued that eBay "should be worth – and will be worth – a lot more money" under GameStop, adding, "I'm thinking about turning eBay into something worth hundreds of billions of dollars. It could be a legit competitor to Amazon."
Funding Concerns and Market Reaction
GameStop currently holds a 5% stake in eBay and has proposed paying $125 per share in a mix of cash and stock. However, doubts persist about whether the company has sufficient funds, given its current valuation. GameStop's stock dropped 10% after Cohen appeared on CNBC, where he awkwardly dodged questions about how the company would secure the $16bn in cash needed to close the deal. "I don't understand your question," Cohen said. "We're offering half cash, half stock, and we have the ability to issue stock to get the deal done. But the full details of the offer are on our website."
Investor Michael Burry, known for his role in The Big Short and a previous supporter of GameStop becoming an "instant Berkshire," revealed he had sold his GameStop shares, remarking, "Never confuse debt for creativity."
EBay's Response
An eBay spokesperson declined to comment but earlier stated that the company had received GameStop's offer and was reviewing it with financial and legal advisers.
