GameStop’s Cohen: ’coming for eBay one way or another’

Investing.com -- GameStop Corp. Chief Executive Officer Ryan Cohen said he will not back down from his pursuit of eBay Inc., despite the online auction company's rejection of his $56 billion takeover bid.

"We're coming for eBay one way or another," Cohen said in an interview with Bloomberg TV on Thursday. He declined to specify whether he plans to increase his offer.

Cohen said he aims to transform the combined company into a $1 trillion business. He criticized eBay's management as complacent and outlined plans to use "eBay's rails" to create a digital marketplace for video game items, a growing revenue source in the gaming industry.

The GameStop chief executive also pointed to potential benefits in combining the two companies' collectibles operations. Collectibles currently represent about 42% of GameStop's revenue.

Cohen proposed using GameStop's physical locations as authentication centers for trading cards, including Pokemon and sports cards. "Once these businesses are together, we've got 1,600 nodes," he said, adding these locations would be "within a 15 minute drive of maybe 80% of the population."

EBay's board rejected Cohen's proposal earlier this year, calling the bid "neither credible nor attractive." The board cited concerns about financing uncertainty, operational risks, and GameStop's governance.

Questions remain about GameStop's capacity to acquire the larger eBay, even with a highly confident letter from a bank. Investors have expressed concerns about the debt GameStop would need to complete the transaction. Cohen said he has received interest from many investors since announcing the bid in May. "The pro forma company is going to be investment grade," he stated.

Earlier this month, GameStop shareholders approved a large increase in authorized share count to facilitate the potential eBay purchase.

When asked about offering additional details or a higher bid, Cohen refused to provide specifics. "I'm not going to negotiate against myself," he said. He indicated he would eventually present his plan directly to eBay shareholders.

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