Ryan Cohen, the CEO of video game retailer GameStop (GME), is still pushing to acquire eBay (EBAY), even after the online marketplace rejected his unsolicited $56 billion takeover offer earlier this week. In an interview with crypto influencer Anthony Pompliano, Cohen argued that eBay has become too bloated and needs major cost cuts. His proposal would use a mix of cash and stock, but eBay’s board dismissed the offer on Tuesday as “neither credible nor attractive,” while also pointing to uncertainty around financing.
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However, Cohen stated that the rejection did not surprise him. He argued that eBay’s board and management would naturally resist the deal because his plan would likely involve replacing them. At the same time, he continued to frame the company as a turnaround opportunity by saying he sees a lot of room to reduce expenses and improve the business if GameStop were able to take control.
For now, Cohen is not backing away. Although he did not lay out the exact next steps, he told Pompliano that GameStop would do what it needs to do to keep pursuing a transaction. Investors appeared to have mixed feelings about the latest comments, with eBay shares rising on Wednesday while GameStop shares remained flat at the time of writing.
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 3.1% downside risk.
