GameStop CEO’s eBay account resurrected following PR stunt
The Register • • business
Key Points:
- GameStop CEO Ryan Cohen had his eBay account reinstated after it was suspended for selling personal items to fund his $55.5 billion bid to take over the digital auction site.
- Cohen initially faced a permanent ban from eBay due to concerns about activity that could put the eBay community at risk, but the suspension was later lifted.
- Cohen is selling memorabilia such as GameStop storefront signs, a Halo 2 statue, and his original iPhone to raise support and funds for the takeover, with proceeds including signed letters to buyers.
- GameStop's buyout offer values eBay shares at $125 each, representing a 46% premium, aiming to combine the companies and cut $2 billion in costs, including halving eBay's $2.4 billion marketing budget.
- Despite eBay's share price rallying after the announcement, GameStop's stock dropped about 10%, with investor Michael Burry selling his shares due to concerns over the deal's leverage and structure.
