GameStop Corp. (NYSE:GME) CEO Ryan Cohen is doubling down on plans to acquire eBay Inc. (NASDAQ:EBAY), a target roughly five times GameStop’s market value, despite eBay rejecting its $56 billion offer in May.
‘Coming For eBay’
During an interview with Bloomberg TV, Cohen declined to comment when asked if GameStop planned to raise its offer, but said, “I’m not going to negotiate against myself.”
The takeover fight is far from over, with Cohen saying, “I’m not going to call my shots, but we’re coming for eBay one way or another,” adding that he would eventually take the plan directly to shareholders.
$1 Trillion Vision
Cohen said he believed a combined business could become a $1 trillion company because the businesses have complementary strengths in gaming and collectibles.
He added that GameStop would use eBay’s marketplace infrastructure to expand digital trading for video game items, while its roughly 1,600 nodes could serve as authentication hubs for trading cards such as Pokémon and sports cards, which would be “within a 15-minute drive of maybe 80% of the population.”
eBay did not immediately respond to Benzinga’s request for comment on Cohen’s remarks.
A Bigger Bet On E-Commerce
In a regulatory filing last month, GameStop said its "leadership team remains focused on advancing the proposed acquisition of eBay" and added that "additional materials regarding the proposed transaction are forthcoming."
Cohen has previously said that combining the two businesses would create a stronger competitor to Amazon.com, Inc. (NASDAQ:AMZN) and indicated he would lead the merged company.
eBay has a market capitalization of about $50.07 billion, compared to GameStop’s roughly $10 billion.
Price Action: GME closed 1.53% lower on Thursday at $21.92 and fell 0.09% in extended trading.
Benzinga edge rankings indicate GME has a Momentum score in the 19th percentile and a Growth score in the 96th percentile.
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