eBay suspended Ryan Cohen's seller account just two days after GameStop unveiled an unsolicited $56 billion takeover bid for the online marketplace. The suspension was disclosed by Cohen himself on X, where he posted a notice from eBay stating the action was taken over "activity that we believe was putting the eBay community at risk." The move came hours after Cohen launched a provocative auction campaign, listing personal items and framing it as "selling stuff on eBay to pay for eBay."
GameStop, led by the meme-stock icon Cohen, proposed a half-cash, half-stock deal at $125 per share for eBay, a company with a market capitalization near $48 billion. The offer, which was not preceded by any discussions with eBay's board, has been labeled a cold approach. eBay's board is now reviewing the non-binding proposal with legal and financial advisers, while shareholders have been advised to take no immediate action.
Cohen's auction page featured an eclectic mix of retro video games, trading cards, life-sized character statues, GameStop collectibles, used Adidas socks, and even a signed copy of his takeover letter to eBay management. By Thursday morning, absurd bids had emerged: a pair of socks and GameStop signs exceeding $14,000, while a Halo 2 statue and other signs topped $10,000. Each listing included a signed proposal letter and free shipping, underscoring Cohen's effort to turn a hostile corporate maneuver into a retail-trader spectacle.
Financing the bid remains a central concern. GameStop has secured a commitment letter from TD Bank Group for up to $20 billion in debt, but a significant gap persists relative to eBay's $48 billion valuation. Investor Michael Burry, known for his big short against the housing market, disclosed this week that he sold all his GameStop shares, cautioning on his Substack: "Never confuse debt for creativity." Cohen, who founded Chewy and later engineered a famous meme-stock surge in 2021, has aggressively cut costs at GameStop, closing stores and laying off 4,500 workers, while its market value rose from $1.3 billion to nearly $11 billion.
