GameStop (NYSE:GME) chief executive Ryan Cohen has renewed his threat to launch a hostile takeover bid for eBay (NASDAQ:EBAY) after the company rejected his acquisition proposal earlier this week, according to a report from the Financial Times on Wednesday.
According to the report, Cohen sent a letter on Wednesday to eBay chairman Paul Pressler criticizing the company’s decision to dismiss the unsolicited $125-per-share proposal without engaging in detailed discussions.
Although eBay’s board declined Cohen’s request for a meeting, the GameStop CEO reportedly said he now plans to take the proposal directly to shareholders.
GameStop Builds Stake to Support Takeover Strategy
GameStop has accumulated a 5% stake in eBay, strengthening its position as it considers pursuing a hostile acquisition strategy.
Earlier this month, GameStop — currently valued at approximately $10.3 billion — unveiled a mixed cash-and-stock offer for eBay that valued the online marketplace at more than four times GameStop’s own market capitalization.
eBay Rejects Offer as “Neither Credible Nor Attractive”
On Tuesday, eBay formally rejected the proposed transaction, describing the half-cash, half-stock offer as “neither credible nor attractive.”
The company also expressed concerns regarding the financing structure behind the proposed deal, the potential debt burden of the combined business, and GameStop’s governance and executive compensation practices.
Cohen Criticizes eBay Leadership and Compensation
In his letter to eBay, Ryan Cohen questioned the company’s governance standards and executive pay policies, highlighting that eBay chief executive Jamie Iannone received $144 million during his six-year tenure even as the company’s active buyer base declined.