Ryan Cohen Rejects eBay's Rejection, Insists Takeover Proposal Deserves Shareholder Vote

GameStop CEO Ryan Cohen has firmly responded to eBay's rejection of his unsolicited $56 billion takeover bid, asserting that the e-commerce giant's board should not dismiss the offer without proper engagement. In a letter to eBay Chairman Paul Pressler and an interview with Piers Morgan, Cohen argued that shareholders deserve the opportunity to evaluate the $125 per share proposal. He criticized eBay's management, specifically highlighting CEO Jamie Iannone's substantial compensation compared to his own owner-operator model at GameStop. Cohen hinted at potential next steps to pressure the board, including possible moves to influence director elections, although analysts note his current 5% stake may be insufficient for such actions. eBay previously rejected the bid citing concerns over financing, long-term growth impact, and leadership structure. Cohen emphasized his commitment by noting his significant personal investment in GameStop stock and lack of salary, contrasting this with eBay's executive pay structures. The situation highlights a significant corporate conflict as Cohen seeks to combine the two companies despite eBay's stance that the proposal is neither credible nor attractive.