--- title: "The GameStop CEO's trillion-dollar valuation gamble: Acquiring eBay is just the first step in his massive compensation package?" type: "News" locale: "en" url: "https://longbridge.com/en/news/284950234.md" description: "GameStop is planning to acquire the e-commerce platform eBay, a bold move that could disrupt traditional merger logic. eBay has a market capitalization of approximately $46 billion, while GameStop's market capitalization is close to $12 billion. If eBay's management rejects the acquisition, CEO Ryan Cohen may directly make an offer to eBay shareholders. This transaction model is rare and typically requires substantial debt or stock issuance. Since joining the board in 2021, Cohen has been committed to the company's transformation, and despite recent revenue declines, his acquisition ambitions remain strong" datetime: "2026-05-02T01:23:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284950234.md) - [en](https://longbridge.com/en/news/284950234.md) - [zh-HK](https://longbridge.com/zh-HK/news/284950234.md) --- # The GameStop CEO's trillion-dollar valuation gamble: Acquiring eBay is just the first step in his massive compensation package? According to Zhitong Finance APP, GameStop (GME.US) is brewing a bold plan that could disrupt traditional merger and acquisition logic. According to insiders, this struggling video game retailer is preparing to make a takeover offer to the e-commerce platform eBay (EBAY.US). Upon the news, eBay's stock price surged over 15% in after-hours trading, while GameStop's stock price also rose by 8% at one point in after-hours trading. Currently, eBay's market capitalization is approximately $46 billion, while GameStop's market capitalization is close to $12 billion. Reports indicate that GameStop has been secretly increasing its stake in eBay. If eBay's management shows resistance to the acquisition, GameStop's CEO and largest shareholder, Ryan Cohen, may bypass the board and make a direct offer to eBay's shareholders. Specific details of the acquisition offer are not yet known, but reports suggest that the offer could be formally made as early as this month. This potential transaction completely breaks the conventional merger and acquisition model. A publicly traded company with a market capitalization of less than a quarter of the target company is attempting a "snake swallowing an elephant" acquisition of another giant, which is extremely rare in the industry. Such transactions typically require reliance on massive debt, significant stock issuance, or a combination of both, betting that the future earnings of the merged company will be sufficient to cover the costs. **Cohen's Strategic Layout** Cohen joined GameStop's board of directors in January 2021 and became CEO in September 2023. Through aggressive cost-cutting, he once led the company back to profitability. Faced with the impact of online shopping and digital downloads on physical stores, GameStop has closed a large number of offline stores in recent years, focusing on transitioning online, but the results have been unstable. In the most recent holiday season, the company's revenue fell 14% year-on-year to $1.1 billion. Despite this, Cohen's ambitions remain enormous. In January of this year, Cohen stated that GameStop was looking for potential acquisition targets in the consumer and retail sectors. At the same time, the company disclosed a massive compensation package worth approximately $35 billion, but the conditions for realization are extremely stringent: Cohen must raise the company's market capitalization to $100 billion and achieve a cumulative performance EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $10 billion. Currently, GameStop has ample funds reserved for large-scale acquisitions. As of the end of March, the company held approximately $9 billion in cash and cash equivalents, nearly doubling from $4.8 billion a year ago. In addition, GameStop also holds a substantial amount of digital assets: according to the recent 10-K form submitted to the U.S. Securities and Exchange Commission, GameStop holds 4,709 bitcoins, valued at approximately $370 million. The company previously denied speculation that it had sold bitcoins, stating that the claim stemmed from a misunderstanding—the relevant operation was actually providing the tokens as collateral to Coinbase Credit for a covered call option strategy, not selling the holdings. Since the "retail investor battle against short sellers" meme stock frenzy in 2021, GameStop's stock price has significantly retreated from its historical highs. In contrast, the acquisition target eBay is also adapting to changes in consumer trends. In recent years, eBay has continued to bet on collectibles, second-hand goods, auto parts, and live auctions, trying to further boost performance growth On Wednesday, eBay released its first-quarter financial report, showing that the company's revenue grew by 19% year-on-year to $3.1 billion, while providing a second-quarter revenue guidance that exceeded Wall Street expectations. So far this year, its stock price has risen by more than 19%. It is noteworthy that the businesses of the two companies are showing points of intersection. eBay's focus on collectibles and second-hand goods trading highly overlaps with GameStop's strong expansion into collectible toys, trading card games, and the clientele that resells scarce games at high premiums. If the two join forces, they may build a massive ecosystem in the e-commerce field of gaming peripherals and collectibles. 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