GameStop (GME) CEO Ryan Cohen went on the attack after his huge plan to buy eBay (EBAY) hit a wall. In an explosive interview with Piers Morgan, the billionaire expressed his anger because eBay said no to a $55 billion offer. Cohen is furious because he offered to pay a 46% premium to take over the company. He says the leaders are just employees with “perverse financial incentives” who do not care about the future of the platform. He told the public, “It’s run by a bunch of losers. … It’s something that can be a lot more successful if it was run by an owner.”
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He believes these bosses blocked the deal because they want to keep collecting millions of dollars in fees for themselves instead of helping the owners.
GameStop CEO Mocks the Outdated Website
During the discussion, Cohen pointed out that eBay’s design is very old and “still looks like it did in 1995.” He thinks the company spends way too much money on running costs while failing to update its technology. Cohen believes he could save $2 billion in costs and turn the site into a leader for live shopping. He wants to fix the platform so it can compete with modern tech giants.
Michael Burry Questions the Math
Not everyone is sure that Cohen’s plan makes sense. Famous investor Michael Burry sold all of his GameStop stock after seeing Cohen struggle to explain the financial details of the deal on TV.
Burry warned other investors with a sharp message: “Never confuse debt for creativity.” Even though many people are skeptical, Cohen is not backing down. He compared his chances of winning to the long odds people gave Donald Trump during his first run for president.
Is EBAY Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on EBAY stock based on 10 Buys, 14 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average EBAY price target of $109.44 per share implies 3.2% downside risk.
