eBay Bans GameStop CEO After $56 Billion Acquisition Stunt
In Focus
- GameStop announced a $56 billion unsolicited bid to acquire eBay on May 3, 2026
- Cohen listed personal items on eBay to finance his takeover bid
- eBay claimed Ryan Cohen’s activity on its platform risked its community
- GameStop’s eBay acquisition bid has attracted criticism from analysts and investors
eBay has suspended GameStop CEO’s account. The e-commerce company cited activity that it believed was risking its community as the reason for suspending Ryan Cohen’s account. The GameStop CEO shared a screenshot of the account suspension notice from eBay.
Why Was Ryan Cohen Banned from eBay
eBay’s action came after a publicity stunt in which Cohen listed personal items on the platform to finance his takeover bid. On May 3, 2026, GameStop announced a $56 billion unsolicited bid to acquire the e-commerce platform.
The video game company offered to pay $125 per share in cash and stock, even though the company’s market capitalization was $11.29 billion. Before his account got suspended on eBay,the GameStop CEO’s listings had attracted tens of thousands of bids.
Bids on items like the GameStop mug and a Master Chief Halo statue had exceeded $3,000 and $10,000 respectively. Each listed item carried a hand-signed copy of Cohen’s acquisition letter to eBay.
Cohen shared that the company had secured a non-binding letter from TD Bank to provide $20 billion in debt financing. The amount leaves a significant funding gap in the $56 billion deal. The GameStop CEO has attracted questions on how he plans to finance the deal.
GameStop’s Bid Attracts Criticism
GameStop’s proposal to acquire eBay has attracted criticism from analysts and investors. Cohen has since claimed that the $56 billion deal financing would be 50% cash and 50% stock. He however struggled to explain the details on how the financing would actually happen.
One investor, Michael Burry, sold his entire GameStop stake after the bid. Moody’s, a credit ratings institution has termed the deal as a “credit negative” for the e-commerce firm. The institution noted that the bid would increase GameStop’s debt from the current $7 billion to $31 billion.
GameStop gained popularity in 2021 following a meme stock craze. Some analysts hold the view that Cohen could be attempting the same strategy to boost its stock. If this happens, the deal could be more realistic because less cash would be required.
Should the deal go through, Cohen said he would serve as CEO of the combined company following the close of the deal. He also committed to cutting $2 billion in eBay’s annualized costs within 12 months.
With 1,600 U.S. retail locations across the U.S, GameStop could bring authentication, fulfillment, and live commerce capabilities to the new entity, enabling it to compete with Amazon.
What Next for eBay?
eBay confirmed that it did receive GameStop’s unsolicited offer. The company’s board is expected to meet this coming week to review the bid. The e-commerce giant has not responded officially about Cohen’s account ban and the acquisition bid. Previously, Cohen has suggested that he would pursue proxy influence for the eBay board seats should the management turn its offer down. Investors will be expecting a formal response from eBay.
