Ryan Cohen is turning to vintage collectibles and oddball merchandise to finance GameStop's audacious $55.5 billion play for eBay. The gaming retailer's CEO posted items for sale on eBay's own platform this week, including a pair of white Adidas crew socks listed at over $14,000 and vintage video games alongside GameStop branded merchandise.
Cohen announced the eBay storefront with characteristic flair, posting Tuesday: "I'm selling stuff on eBay to pay for eBay." The account was briefly suspended but reinstated within hours, according to someone familiar with the situation. By Thursday afternoon, the highest bids had climbed to nearly $15,000 for a pair of GameStop store signs, while auctions for the merchandise were scheduled to close on May 13.
The product lineup reflects Cohen's eclectic taste. Among the items were a painting of Tylee, the toy poodle that inspired him to launch the online pet retailer Chewy before its $3 billion sale to PetSmart. GameStop branded goods rounded out the collection: hats, mousepads, mugs.
The stunt arrives as GameStop faces serious questions about its ability to bankroll the eBay acquisition. The company announced the unsolicited bid on Monday, offering $125 per share in a cash and stock combination, while holding a 5% stake in eBay. But GameStop's current valuation raises doubts about whether it can actually assemble the required $16 billion in cash to close such a deal.
Cohen appeared on CNBC to discuss the proposal and stumbled when pressed on funding details. When asked directly how GameStop would come up with the missing billions, he deflected. "I don't understand your question," Cohen said. "We're offering half cash, half stock, and we have the ability to issue stock to get the deal done."
The market reacted skeptically. GameStop stock dropped 10% following the television appearance. Michael Burry, the investor whose bet against the housing market was chronicled in "The Big Short," announced he had dumped his GameStop holdings. "Never confuse debt for creativity," Burry wrote.
Cohen's letter to eBay's board suggested he sees massive untapped value in the e-commerce platform. "eBay should be worth and will be worth a lot more money," he wrote, claiming he could transform it into "a legit competitor to Amazon" worth hundreds of billions. He also warned that if eBay's board rejected his offer, GameStop would pursue a hostile approach.
eBay has not embraced the bid. A company spokesperson declined comment but said the board was reviewing the proposal with financial and legal advisers.
Author James Rodriguez: "Cohen's tube sock auction is clever theater, but it highlights the real problem: nobody can explain where the actual money comes from."
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