GameStop CEO Ryan Cohen Wants To 'Own eBay Forever' And Cut $2B In Costs Fast: 'Like Chewy On Steroids'

• Cohen said eBay has underperformed for a decade and plans to quickly cut marketing and overhead costs.
• A major part of the strategy involves expanding collectibles and verified resale.
• eBay CEO Jamie Iannone, meanwhile, has sold shares under a pre-arranged trading plan.  

GameStop Corp. CEO Ryan Cohen is pushing an ambitious plan to take over eBay (EBAY), saying better cost control and tighter management could lift profits and support long-term growth after the video game retailer confirmed plans to acquire the online marketplace in a deal worth about $56 billion, paid through a mix of cash and stock. 

What Would EBAY Look Like Under Cohen?

Speaking on the TBPN podcast, Cohen said eBay hasn’t lived up to its potential over the past 10 years, despite its large global presence and loyal user base. He said better leadership could create more value by updating how the company runs and sharpening its focus.

“Frankly, with me running eBay, I think the earnings power of the company is going to increase substantially as well as the ability to grow. The platform stagnated over the last decade and, I could do a lot with eBay. I love it. That's a very strong business and that's right up my alley.”

-Ryan Cohen, CEO, GameStop

Cohen also criticized what he described as excessive spending at large-scale digital marketplaces like eBay, and added that marketing and overhead costs could be reduced without harming demand.  “I want to own eBay forever. Like, I love that business. It's run like a public utility. It should have been wiped out, but it hasn't been,” Cohen said. 

He pointed to GameStop’s own restructuring efforts as evidence that leaner operations can still support strong brand recognition and revenue stability. He said much of eBay's marketing spending does not generate sufficient returns and is driven more by internal incentives than by results. Cohen said he would manage the business more simply, cutting costs quickly across marketing, sales, and overhead.

“$2 billion in cost cuts between sales and marketing and corporate overhead is not a lot. It's not something that's going to take a few years. That is going to happen fast, fast because I'm putting leverage on this thing and I don't want to run a leverage business.” 

He pointed out that eBay spends heavily to add relatively few users and has very high operating costs for a company that doesn’t hold inventory. He believes the business is overstaffed and could be run far more efficiently with fewer resources.

GME And EBAY’s Collectibles 

A key part of Cohen’s plan is to grow the market for collectibles and verified resale items, where trust is still a major issue. He said GameStop’s roughly 1,600 stores could serve as centers to check and confirm high-value items such as trading cards, luxury products, and memorabilia.

He said this network could reduce fraud and help increase sales on eBay. Cohen also sees live commerce as a big growth area, where sellers and creators connect with buyers through live streams. He believes eBay can grow by working more closely with creators and improving its platform to match newer social shopping apps. 

Investors and analysts are doubtful that the deal can be funded and executed successfully. eBay said it received the offer, but there are no confirmed talks yet. 

New regulatory disclosure also showed that eBay CEO Jamie Iannone executed multiple stock sales earlier this month under a pre-arranged trading plan. According to the filing, Iannone sold multiple blocks of shares across different price levels ranging from just above $101 to around $110 per share.

In the podcast, Cohen indicated he is prepared to take the bid directly to shareholders if necessary. He also said that his aim was not to be an activist investor but to run it. “I want that to be my baby."

“When I think about what I can do with eBay…look at Chewy. eBay is like Chewy on steroids. There’s so much more runway, and it’s global,” Cohen said, referring to the online pet supplies retailer he co-founded and led for seven years until March 2018. During that time, he grew sales from $2 million to $3.5 billion before selling the company to PetSmart in 2017, in what was then the largest e-commerce acquisition ever.

What Retail Traders Feel About EBAY

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

A user called for a radical change and added that, “Same sh**y website for past 25 years. Zero innovation. Terrible payment system.”

Another user said, “eBay should want someone who will make the business more profitable.” 

EBAY stock has gained over 20% year-to-date, while GME has eked out similar gains. 

Also See: Cathie Wood’s ARK Invest Buys More Shopify Shares, Undeterred By Slower Growth Outlook

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