eBay rejects GameStop’s $56B offer: “Your proposal is neither credible nor attractive”

Cohen not “passionate about GameStop”

Cohen said in an interview with Business Insider that he would prefer to be the CEO of eBay than the CEO of GameStop. “I did not want to be the CEO of GameStop. I want to be the CEO of eBay,” he said. “I’m passionate about eBay. I believe in eBay’s business. I wasn’t passionate about GameStop. That’s the difference.”

Cohen claimed that eBay could become more successful by dramatically cutting sales and marketing costs, and by using GameStop’s 1,600 US stores as “a national network for authentication, intake, fulfillment, and live commerce.” But eBay’s board told Cohen that the company can succeed with its current plan.

“eBay is a strong, resilient business that has delivered meaningful results over the past several years,” the board’s letter to Cohen said. “We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders. With its differentiated global marketplace and a clear strategy, eBay’s board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.”

Cohen has been selling various personal items on eBay in a humorous attempt to raise money for the $55.5 billion offer. “I’m selling stuff on eBay to pay for eBay,” he wrote.

Cohen’s account was suspended last week, but eBay has since allowed him to resume the sales. “Cohen’s eBay account was initially flagged for suspicious activity by eBay’s internal artificial-intelligence tool, leading to an automatic ban, a person familiar with the matter told MarketWatch. But after further review, his account was reinstated and he is now able to buy and sell again,” MarketWatch wrote.

A set of GameStop store signs being sold by Cohen has been bid up to nearly $15,000. A Halo 2 Master Chief statue is fetching almost as much, and a Ken Griffey Jr. rookie card has a high bid of over $11,000. With a day left on Cohen’s auctions, there is hope that final prices will be even higher. It’s not $55.5 billion, but it’s a start.