In a memo to investors Sunday, Cohen\u2019s company pledged to find some $2 billion of annual savings within 12 months of closing.\u00a0<\/p>\n\n\n\n
Shares in the two companies both soared more than 15% on alternative trading platform Blue Ocean after GameStop\u2019s announcement. <\/p>\n\n\n\n
Still, eBay was trading at about $117 \u2014 substantially below the value of GameStop\u2019s offer \u2014 in a sign investors see hurdles to completing a deal.<\/p>\n\n\n\n
The takeover bid follows the surprising ascent of GameStop, a chain of video game outlets that shrank its brick-and-mortar footprint after gamers increasingly bought software in digital stores. <\/p>\n\n\n\n
In 2021, it became the centre of a retail-investor frenzy. <\/p>\n\n\n\n
Michael Burry, the Scion Asset Management head who rose to prominence after a winning wager against mortgages ahead of the 2008 financial crisis, helped fuel GameStop\u2019s rally by taking a\u00a0bullish\u00a0stance on the firm around 2019.<\/p>\n\n\n\n
Cohen is now proposing to take over a company roughly four times larger than the retail chain he operates. <\/p>\n\n\n\n
GameStop had a market value of $12 billion as of Friday. eBay was much bigger at around $46 billion, though the game retailer has about $9 billion in cash. <\/p>\n\n\n\n
The takeover offer is split evenly between cash and GameStop common stock.\u00a0Both companies have struggled to adapt to changing consumer preferences. <\/p>\n\n\n\n
GameStop has shut stores and emphasised collectible toys and trading cards as more video games get purchased online. <\/p>\n\n\n\n
eBay too has been pushing collectibles and used goods on its own marketplace, creating a business overlap.\u00a0<\/p>\n\n\n\n
Analysts raise doubts over successful deal<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/05\/GameStop-and-eBay-share-prices_Bloomberg-1114x800.jpg\")
<\/a><\/figure>\n\n\n\nAbout 136 million shoppers globally made purchases on eBay in the 12-month period ending March 31. Shoppers spend about $80 billion annually on the marketplace.<\/p>\n\n\n\n
\u201ceBay itself is in the midst of a turnaround \u2014 one that is going well,\u201d Bernstein analysts wrote. <\/p>\n\n\n\n
\u201cBut to the extent there are any challenges or volatility from categories like Collectibles, this could put further strain on the math. We see real challenges to structuring this deal.\u201d<\/p>\n\n\n\n
eBay representatives declined to comment. CEO Jamie Iannone was scheduled to meet on Monday with Bloomberg News. <\/p>\n\n\n\n
But a company representative made contact on Sunday to cancel the meeting, saying Iannone\u2019s travel plans had changed over the weekend.<\/p>\n\n\n\n
GameStop\u2019s Cohen earlier told the Wall Street Journal he\u2019s prepared for a proxy fight and will take the offer to shareholders if necessary. <\/p>\n\n\n\n
\u201ceBay should be worth \u2014 and will be worth \u2014 a lot more money,\u201d he told the newspaper. \u201cI\u2019m thinking about turning eBay into something worth hundreds of billions of dollars.\u201d<\/p>\n\n\n\n
Cohen has set ambitious goals for himself. <\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nAbout 136 million shoppers globally made purchases on eBay in the 12-month period ending March 31. Shoppers spend about $80 billion annually on the marketplace.<\/p>\n\n\n\n
\u201ceBay itself is in the midst of a turnaround \u2014 one that is going well,\u201d Bernstein analysts wrote. <\/p>\n\n\n\n
\u201cBut to the extent there are any challenges or volatility from categories like Collectibles, this could put further strain on the math. We see real challenges to structuring this deal.\u201d<\/p>\n\n\n\n
eBay representatives declined to comment. CEO Jamie Iannone was scheduled to meet on Monday with Bloomberg News. <\/p>\n\n\n\n
But a company representative made contact on Sunday to cancel the meeting, saying Iannone\u2019s travel plans had changed over the weekend.<\/p>\n\n\n\n
GameStop\u2019s Cohen earlier told the Wall Street Journal he\u2019s prepared for a proxy fight and will take the offer to shareholders if necessary. <\/p>\n\n\n\n
\u201ceBay should be worth \u2014 and will be worth \u2014 a lot more money,\u201d he told the newspaper. \u201cI\u2019m thinking about turning eBay into something worth hundreds of billions of dollars.\u201d<\/p>\n\n\n\n
Cohen has set ambitious goals for himself. <\/p>\n\n\n\n