EBay Spurns GameStop’s Bid as ‘Neither Credible Nor Attractive’

0:00Scarlet Fu:Is your multi-entity management creating more confusion than clarity? You need the Intuit ERP. Intuit Enterprise Suite. It's the AI-native ERP solution that's powerful, painless, and proven. Learn more at intuit.com slash ERP. Small businesses are the pulse of every community. They bring people together, create opportunities, and drive growth. Chase for Business helps business owners like you with personalized guidance and convenient digital tools all in one place. With that guidance and your determination, you can take your business farther and help build a brighter future for your community.

0:34Scarlet Fu:Learn more at chase.com slash business. Chase for business. Make more of what's yours. The Chase Mobile app is available for select mobile devices. Message and data rates may apply. JPMorgan Chase Bank N.A. Member FDIC. Copyright 2026. JPMorgan Chase and Company. Sonesta Travel Pass makes traveling more rewarding, designed to help you get more out of every stay. Sign up at Sonesta.com to enjoy instant savings, bonus points, and valuable perks like early check-in, late checkout, room upgrades, and free stays over time. With Sonesta Travel Pass, every stay brings you closer to your next reward. Choose from more than 1 ,100 hotels across 13 distinctive brands and unlock the best available rates when you book direct with Sinesta Travel Pass.

1:21Here today, roam tomorrow. Join now at Sinesta.com. Terms and conditions apply. Bloomberg Audio Studios. Podcasts. Radio. News. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

1:51Scarlet Fu:One of the stories, Paul, that's got you and me scratching our heads is eBay. GameStop's bid for eBay, a company that is four times its size. Ryan Cohen, of course, making this very dramatic takeover offer for the company. eBay has now rejected that$56 billion takeover offer, calling it neither credible nor attractive. I think that pretty much tells you what it thinks. I did investment banking for a long time, and I can get very creative with capital structures, but I have a hard time seeing how they would finance this thing. All right, let's bring in Cecilia De Nastasio. She is our video game reporter here at Bloomberg.

2:24Scarlet Fu:Great to see you, Cecilia. Thank you for having me. What was the thinking behind GameStop and making a bid for eBay? You know, we actually didn't get a lot of insight into what CEO Ryan Cohen thought that the proposed synergies could look like. He never really went out and said, hey, we run a video game retail company, but also we're doing really well in collectibles. We're doing really well selling Pokemon cards. eBay also doing really well selling Pokemon cards and baseball cards. We could have heard that in any of the interviews that Ryan Cohen gave, but he didn't actually really go out and say that.

2:58In fact, when he was given questions

3:00Scarlet Fu:about what the combined company could look like, he often sort of dodged. So, I mean, what's the story with GameStop these days? I mean, I'm not a gamer. Thank goodness. Most of my kids are not gamers. But it's almost a meme stock. But what's the real call on this company these days? You know, it's interesting because GameStop could be doing a lot worse than it is doing. They shuttered thousands of stores over the last couple of years. It used to be a ubiquitous presence at your neighborhood strip mall. And, you know, gamers are increasingly purchasing their wares in online marketplaces and not at these physical storefronts.

3:38Scarlet Fu:But GameStop is still hanging on. CEO Ryan Cohen said, you know, we could be doing worse. It's not a great business, but it's hanging in there. We could be doing worse. It's not a great line that you want to hear from the CEO of a company stock that you happen to own. So having said all of this, there's been some reporting that perhaps Ryan Cohen just wanted to boost the stock price of GameStop because there's some clause, I guess, in one of his compensation packages that if the share price reaches a certain level, he gets another big payout. Can you talk us through what's going on there? It's really hard to say.

4:10Scarlet Fu:If the companies did end up combining, then it's possible that he would have been able to receive that payout and he would have been very happy. But also at the same time, a lot of analysts pointed out that the way that Ryan Cohen approached eBay wasn't exactly so friendly. You know, he it was an unsolicited bid. He didn't publicly state what he thought the synergies could look like. When eBay came back saying that the deal felt neither credible nor attractive, I think that kind of speaks to this idea that, you know, maybe this wasn't so thoroughly thought out. I think a lot of analysts are very, very confused about the tenor of this.

4:49Well, CNBC did a lot to improve that outlook there. Yeah. I mean, what a disaster that was. So do you think GameStop would pursue a proxy fight and take it to that next step?

4:59Scarlet Fu:It's possible. You know, Ryan is a very unpredictable executive, which is part of what makes him really fun to cover. He posted a manifesto on X, formerly known as Twitter, describing how he thinks American business people are often taking a really risk-averse approach to running their companies, and he's really trying to carve out a model for something really different. So it's possible he would pursue the proxy fight. It's possible also that this was a publicity stunt. Do we know who his advisors are, his investment banking or legal advisors? The only thing I saw was he's got a financing letter from TD Securities, which again tells you that.

5:33Scarlet Fu:Highly confident. Highly confident for$20 billion. I haven't seen that in 30 years. But we don't really know who his other advisors are. He's a highly autonomous individual. Stay with us. More from Bloomberg Intelligence coming up after this.

6:10Support for the show comes from Public. Lately, it feels like there are two types of investing platforms. Some are traditional brokerages that haven't changed much in decades, and others feel less like investing and more like a game. Public is positioned differently. It's an investing platform for people who are serious about building their wealth. On Public, you can build a portfolio of stocks, options, bonds, crypto, without all the bugs or the confetti. Retirement accounts? Yep. High-yield cash? Yes, again. They even have direct indexing. Public has modern design, powerful tools, and customer support that actually helps.

6:45Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio. That's public.com slash market. Add paid for by Public Holdings. Brokered services by Public Investing, member FINRA SIPC. Advisory services by Public Advisors, SEC Registered Advisor. Crypto services by ZeroHash. All investing involves risk of loss. See complete disclosures at public.com slash disclosures. Find home wherever you roam at Sonesta ES and Simply Suites, where longer stays feel comfortable, flexible, and easy. Stretch out and enjoy spacious accommodations and home-like amenities designed to help you settle in and stay productive or relaxed for however long you need.

7:24And when you're a Sonesta Travel Pass member, staying at Sonesta ES and Simply Suites means earning points toward free nights, upgrades, and more with every eligible stay. Go to Sonesta.com to book your stay and unlock the best rates with Sonesta Travel Pass. Here today, roam tomorrow. Join now at Sonesta.com. Terms and conditions apply. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Under Armour reported some numbers today.

8:04I didn't see them, but they can't be good. The stock's down 16 % here. But I know somebody who does know what's going on here. Lily Myers, she's a retail reporter for Bloomberg News, joining us live here in our Bloomberg Interactive Broker Studio. What did Under Armour have to say that maybe the market didn't go for?

8:20Scarlet Fu:Yeah, so I think Under Armour disappointed investors. I think that their revenue for next year, or this current year, is not as high as they expected, and their earnings per share was also lower. They also mentioned the Middle East conflict as impacting their sales, and the split from the Steph Curry brand hitting their bottom line. My question with Under Armour, I'm a Nike person, by the way, full disclosure. Always have been, and I'm not switching. But it's competitive. I mean, there's Nike out there, Adidas, for those of us in the know, we pronounce it that way. And I'm just not sure, and there's so many niche players.

8:57I mean, the kids here at Bloomberg, they were on all different kinds of sneakers that I've never seen before. How does Under Armour fit in there, do you think?

9:05Scarlet Fu:Yeah, I mean, I think it's a really competitive space, like you described, both on the footwear side and the apparel side. I know Under Armour, as part of this restructuring plan that they've been going through recently, has been trying to really slim down the number of SKUs that they sell, you know, kind of streamline the products and also cut back on their discounts. So is this, you know, I understand that it's really a product driven business. You can't just crank out the same sneaker year after year after year. I mean, every year it's like fashion. It is fashion. Do they have the resources?

9:39Do they have the capabilities to really compete against the, I guess, the bigger players?

9:43Scarlet Fu:Yeah. I mean, it'll be interesting to see the hard thing with some of the retail innovation cycle is that it takes like 18 months, you know, to start seeing some of that new product actually hit the shelves. So I'll be interested to see what they come out with. You mentioned they lost Steph Curry. That's a big name. How do they think about using athletes as part of their marketing promotion strategy? Is it core to them? And how big of a loss was like Steph Curry? Yeah, so for Steph Curry, I mean, that was a big deal. They had worked with the Curry brand for a long time. That was a really essential part of their basketball business.

10:22Scarlet Fu:So this quarter, they said that for this coming year, the Curry brand separation made it so that their revenue was down slightly. If they had stayed with Curry, it would have been flat for the year. So it'll be interesting to see if they try and sign more big names or what comes next. I mean, there's kids coming out of college every year. Are they going to be aggressive? What did they say their strategy is there? Because it's a tried and true strategy, particularly for athletic wear. Nike's seen it. I mean, Michael Jordan, you know, that's the great example. But are they committed to that strategy, do you think?

10:58Scarlet Fu:Yeah, that's a good question. I mean, they definitely work with athletes. I'm curious to see how that will evolve moving forward, especially without Curry. What's the tariff situation with some of these shoe companies these days? I mean, do they even talk about it anymore? Because I know a lot of the retail companies, and others as well, used to just give you a number. It costs us$500 million this quarter or$40 million this quarter. Is it still an issue for these apparel companies? Yeah, it's interesting. So it's switched a little. Now they're talking about what their expected tariff refund will be.

11:30Scarlet Fu:So they're baking that in more on the positive side. I think, you know, there's a lot we still don't know about what companies will get out of tariff refunds, if they'll get the full amount, what that process will actually look like, how long it will take. But that's the discussion now is, you know, the upside from that refund. Now, companies have actually, you have to go file and say, I want a refund, right? Now, has the Nike done it? I'm thinking of the big, big name in your retail store. Has Nike actually done that, for example? Yeah, so a lot of major retailers have sued for tariff refunds.

12:02Scarlet Fu:And I think it'll be interesting to see as they become more of a reality how companies will go about it. There still really isn't a policy framework to get the money, right? They're still working on that? From my understanding, I think it's still in process. Now, the question is, if Nike gets money, what do they do with it? Do they give it back to me who paid a tariff on my kicks here? We don't know that. Yeah, I mean, I think that will be really an interesting thing to watch. I think consumer reaction will be interesting. You know, consumers who have had to face those higher prices, but also the company that's had to shoulder a lot of it.

12:42Stay with us. More from Bloomberg Intelligence coming up after this. Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds, and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R &D spend, small cap stocks with improving operating margins, or the S &P 500 minus high debt companies. Chances are there isn't an ETF that fits your exact criteria.

13:22But on public, you just type in a prompt and their AI screens thousands of stocks and build a one-of-a-kind index. You can even backtest it against the S &P 500. Then you can invest in a few clicks. Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio. That's public.com slash market. Ad paid for by Public Holdings. Brokered services by Public Investing, member FINRA SIPC. Advisory services by Public Advisors, SEC Registered Advisor. Crypto services by ZeroHash. Sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss.

13:57See complete disclosures at public.com slash disclosures. Sonesta Travel Pass makes traveling more rewarding. Designed to help you get more out of every stay. Sign up at senesta.com to enjoy instant savings, bonus points, and valuable perks like early check-in, late checkout, room upgrades, and free stays over time. With Senesta Travel Pass, every stay brings you closer to your next reward. Choose from more than 1 ,100 hotels across 13 distinctive brands and unlock the best available rates when you book direct with Senesta Travel Pass. Here today, roam tomorrow. Join now at senesta.com. Terms and conditions apply.

14:35Scarlet Fu:If you follow markets, you know the value of long-term thinking. You plan, you diversify, you prepare for volatility. But even the best strategies can't prevent every bad day. For more than 75 years, Cincinnati Insurance has helped individuals and businesses navigate tough moments with expertise, personal attention, and independent agents who focus on relationships, not transactions. The Cincinnati insurance companies. Let them make your bad day better. Find an agent at CINFIN.com. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App.

15:21Listen on demand wherever you get your podcasts or watch us live on YouTube. All right. So President Trump leaving today for China, he's got a plane full of executives, including an executive for Boeing. Yep. And boy, you think about a company that's leveraged to China. Hey, I always think of Apple, but Boeing's right there. And we want to talk to Sid Phillip about that Bloomberg chief correspondent for global aviation, because this could be one of those trips where somebody, you know, China announces a gajillion plane deal.

15:53Scarlet Fu:And, you know, it's actually something that the CEO has kind of hinted at already, saying that, you know, Trump's visit would be, quote, a meaningful opportunity for us. Yeah. Sid Philip, he does all this stuff for Bloomberg News. What are you expecting here on this trip for Boeing? What do you think Boeing wants to get out of this? So Boeing's looking to secure its first big order from China in almost a decade. And so we understand it's going to be 500 737 MAXs and a large number of white body planes. And that would be significant because the Chinese airlines haven't really ordered any Boeing planes in a while.

16:30Is that just because they're mad at us? They were mad at us. And there was COVID in the middle of it. And so the Chinese airlines actually need those planes because they don't really have a supply of Boeing. I mean, they operate both Airbus and Boeing planes and they don't really have a supply of planes beyond the 2030s. And so if they want to keep expanding, if they want to keep adding more service, they need those planes. And this order is a way to get that.

16:56Scarlet Fu:OK, so this order is a way to get that. I guess if you're an airliner, you're thinking, what's the next thing Boeing is selling that I want to get my hands on? I mean, you know, not tomorrow, not next month, but down the road as I plan my fleet. Does Boeing have an answer to that? Because it feels like the company has spent so much time writing itself that it hasn't really put as much, at least outward energy, into innovating the next jet. So that's the really big question that the CEO, Kelly Ortberg, is really looking at. So while obviously you have the short term and the immediate issues that they have to ramp up production, they have to ramp up cash, like cash generation, reduce that debt pile.

17:35The bigger question for Boeing is where do they go from here? And the 737 is basically a long derivative of a 1960s jet. And so for Boeing, they need to decide what they do next. And that will be crucial in the sort of duopoly that they have with Airbus. And Airbus has been talking about how they are working on the next generation of product that they're aiming to get out in the middle of next decade. And that would basically allow airlines to get something that's more fuel efficient and allows them to fly greater distances with more passengers on them. And so what we understand is that Boeing is working on something that's more evolutionary rather than revolutionary, because the last thing airlines need is uncertainty.

18:20And when you have a product that's revolutionary, it always comes with teething issues. It comes with all sorts of complications with new technology and how that whole meshes together with existing infrastructure.

18:33Scarlet Fu:Yeah, we've seen that play out before. Exactly. And so for the airlines, they want something that's stable, allows them to sort of keep going as usual and not sort of rocking the boat too much. And that's really key for Boeing. So how do you derive more fuel efficiency using evolutionary technology? And that's where we see Boeing sort of going in terms of their next products. Ten seconds. If I get a big order today from China, they can't even make the planes Boeing. I mean, they have to build another factory or two. So Boeing is in the process of opening a new factory for the 737. And they are looking at ramping up production.

19:09And they've been talking about how they've got these short-term goals. So they're currently looking at 42 a month. They're going to ramp up to 47 a month, then 52 a month, then 60. So essentially for Boeing, they have a sort of stepped up plan to ramp up production, depending on how the FAA sort of signs off on it.

19:27Scarlet Fu:The production will be in the U.S.? It will be in the U.S. So Boeing produces all its planes in the U.S. Stay with us. More from Bloomberg Intelligence coming up after this. Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds, and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R &D spend, small cap stocks with improving operating margins, or the S &P 500 minus high debt companies.

20:08Chances are there isn't an ETF that fits your exact criteria. But on Public, you just type in a prompt and their AI screens thousands of stocks and build a one-of-a-kind index. You can even backtest it against the S &P 500. Then you can invest in a few clicks. Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio. That's public.com slash market.

20:42Sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss. See complete disclosures at public.com slash disclosures. From coast to coast, unlock adventure at Red Lion Hotels by Sinesta, where restful sleep, friendly service, and trusted local knowledge are part of every stay. Red Lion makes it easy to feel welcomed, comfortable, and connected wherever the road takes you. Whether you're traveling for business or pleasure, you can spend less and make more of every trip. When you sign up for Sinesta Travel Pass, you'll get their best rates instantly.