GameStop CEO Ryan Cohen has opened an eBay storefront to sell vintage video games, baseball cards, GameStop merchandise, and a $14,000 pair of tube socks in an unconventional effort to help fund the company's proposed $55.5bn acquisition of eBay. Cohen posted a link to his eBay store on Tuesday night, stating, "I'm selling stuff on eBay to pay for eBay." His account was briefly suspended but later reinstated, with bidding now open until 13 May.
Unusual Fundraising Strategy
As of Thursday afternoon, the highest bids included a pair of GameStop store signs nearing $15,000 with almost 100 bids, and white Adidas crew socks at just over $14,000. Other items feature a painting of Tylee, a toy poodle that inspired Cohen to found Chewy, along with GameStop hats, mousepads, and mugs. Cohen became CEO of GameStop in 2020, leading its "meme stock" era after selling Chewy to PetSmart for over $3bn.
Acquisition Details and Market Reaction
On Monday, Cohen announced an unsolicited bid to acquire eBay for $55.5bn, warning of a hostile approach if dismissed. In a letter to eBay's board, he claimed eBay "should be worth – and will be worth – a lot more money" under GameStop, potentially becoming a "legit competitor to Amazon." GameStop holds a 5% stake in eBay and offered $125 per share in a cash and stock split. However, doubts persist about funding, as GameStop's stock dropped 10% after Cohen awkwardly dodged questions on CNBC about securing the $16bn cash portion. Investor Michael Burry, known from The Big Short, sold his GameStop shares, stating "Never confuse debt for creativity." eBay declined to comment but confirmed it is reviewing the proposal with advisors.
