Ryan Cohen's GameStop has launched a $56bn unsolicited bid to acquire eBay, combining cash and stock. The proposal, representing a premium over eBay’s current valuation, aims to transform the company’s 1,600 physical locations into eBay retail hubs. Despite GameStop’s $12bn market cap—partially inflated by its $5bn net cash—Cohen’s aggressive strategy mirrors Warren Buffett’s Berkshire Hathaway model, though with notable differences. Buffett-style cash bids are rare here, as GameStop relies on convertible bonds and volatile equity financing.

Critics argue Cohen’s plan risks overexposure, given eBay’s existing leverage capabilities and its own 0.6x EBITDA net debt. Proponents, including TD Bank (which pledged $20bn in debt support), bet on Cohen’s ability to outperform eBay’s current leadership. Shareholders face a pivotal vote on a $20bn performance-based bonus for Cohen, contingent on deal success.