Full Breakdown
Ryan Cohen’s $56 B Unsolicited Bid for eBay and the eBay Account Controversy
5/9/2026, 9:12:48 PM
Unsolicited $56 B Offer for eBay
On May 3, GameStop announced an unsolicited bid to acquire eBay for $125 per share, valuing the marketplace at about $56 billion—a 46 % premium. The proposal is framed as half cash, half stock, with Cohen seeking to become CEO of both firms.
Financing Structure and eBay Performance
GameStop, with a market cap near $11 billion and $9 billion cash, says the deal will be funded by $9 billion cash, a $20 billion TD Bank debt commitment, and $28 billion equity from shareholders. Cohen projects $2 billion in annual cost cuts for the combined company. eBay reported 2025 operating income of $2.28 billion and an EBITDA margin of 24 %.
Official Responses
eBay’s board confirmed receipt of the proposal and said it will be discussed at board level. The board indicated it would not comment further until it had carefully reviewed the offer. Cohen reiterated his aim to lead eBay.
Criticism and Market Skepticism
Investor Michael Burry sold his GameStop stake, calling the deal over-leveraged and estimating a net-debt-to-profit ratio of 7.7 and profit-to-interest coverage of 1.2-1.5, noting repayment could take 7-10 years. CNBC hosts labeled Cohen’s interview “dizzying, bizarre and combative.”
eBay Account Suspension and Reinstatement
Cohen listed personal items on eBay—including socks that attracted $14 K bids, a GameStop hat, and a Trump baseball card. Within ten hours eBay sent a suspension notice citing community risk; a source said automated flags triggered the ban, which was manually lifted. The listings remained live and continued to receive bids while the account was under review.
Conflicting Reports on Deal Financing
Sources differ on financing details: Cohen cites $9 billion cash, $20 billion debt, $28 billion equity; other reports list $9.4 billion cash, $9 billion equity, $20 billion debt. No independent verification of the TD Bank letter exists, and eBay has not disclosed any valuation or due-diligence findings related to the offer.
Verbatim Quotes
- “We wanted to let you know that your eBay account has been permanently suspended because of activity that we believe was putting the eBay community at risk,” — eBay, Account Suspension Notice
- “Until the Board has further carefully and thoroughly considered the proposal, the company does not intend to comment further at this time.” — eBay Board
- “I did not want to be the CEO of GameStop. I want to be the CEO of eBay,” — Ryan Cohen, GameStop CEO
What’s Next
eBay’s board is expected to discuss the proposal at a forthcoming meeting. GameStop’s shares fell after the announcement, and investors are watching Cohen’s eBay listings and any further TD Bank disclosures. The board’s decision is expected within weeks, shaping the next phase of the potential merger.
