WEBVTT - GameStop CEO Ryan Cohen Talks Plan to buy eBay

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>One of the biggest potential deals in technology is game

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<v Speaker 2>Stop's attempt to buy eBay. In May, the video game

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<v Speaker 2>retailer and it's CEO Ryan Cohen, launched an unsolicited fifty

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<v Speaker 2>six billion dollar bid for the e commerce platform. eBay

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<v Speaker 2>rejected the offer, calling it neither credible nor attractive. Since then,

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<v Speaker 2>Cohen has scrapped a controversial multi billion dollar pay package,

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<v Speaker 2>and game Stop shareholders have approved increasing the company's authorized sharecount,

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<v Speaker 2>giving it more flexibility to pursue strategic transaction. So where

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<v Speaker 2>does the deal stand now? Ryan Cohen joins us on

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<v Speaker 2>Bloomberg Television and Radio. Right, thank you for your time,

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<v Speaker 2>and good morning, welcome to Bloomberg Tech. On the long

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<v Speaker 2>list of things that have happened since May, our audience

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<v Speaker 2>just has a very simple question, forew which is what's changed,

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<v Speaker 2>what's developed in that period of time.

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<v Speaker 3>There has been a complete failure by the media to

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<v Speaker 3>explain why this transaction makes sense. And so number one,

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<v Speaker 3>my track record chewing in game Stop, it speaks for themselves,

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<v Speaker 3>my alignment with shareholders.

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<v Speaker 4>I'm putting five.

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<v Speaker 3>Hundred million dollars of my own money into the transaction,

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<v Speaker 3>the high margin growth opportunities for this business within live commerce,

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<v Speaker 3>which company has not been doing well, and using game

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<v Speaker 3>stop stores as nodes for both the marketplace and live

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<v Speaker 3>commerce is huge because the business today in live commerce

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<v Speaker 3>is tiny.

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<v Speaker 4>And then building out a.

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<v Speaker 3>Digital marketplace for in game items, those are just like

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<v Speaker 3>some of the high growth opportunities within the business. And

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<v Speaker 3>then there is the cost takeout opportunity. I've committed to

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<v Speaker 3>taking out two billion dollars within the first year, and

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<v Speaker 3>that's just the beginning. So this whole narrative that the

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<v Speaker 3>business is going to be too leveraged is a fantasy

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<v Speaker 3>invented by the media and it's just simply in our trill.

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<v Speaker 2>On the banking side, let's go there. You lined up

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<v Speaker 2>some banking support, right, and I think that one of

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<v Speaker 2>the concerns that Moody's put out there as an example

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<v Speaker 2>was the credit rating and the credit worthiness of the

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<v Speaker 2>combined entity. So again another question from the audience is

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<v Speaker 2>explain the banking support that you've secured since May, but

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<v Speaker 2>also that concern that the debt component of it, what

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<v Speaker 2>the credit negative outlook would be for a combined entity

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<v Speaker 2>based on the plan that you just outlined.

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<v Speaker 4>We have a highly confident letter from our bankers.

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<v Speaker 3>We have a lot of party that are interested in

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<v Speaker 3>this transaction, and the most important thing ultimately, if we

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<v Speaker 3>can't get the debt, then it means that eBay can't

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<v Speaker 3>get the debt, and eBay can get the debt, so

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<v Speaker 3>its entire narrative is simply not trill.

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<v Speaker 2>I didn't explain that question very well, Ryan, if I'm

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<v Speaker 2>self reflective honest about it, So I'm just going to

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<v Speaker 2>go back to it. Your financing letter is from TD right,

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<v Speaker 2>and it was widely reported to depend on the combined

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<v Speaker 2>company maintaining investment grade credit rating, and then Moodies came

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<v Speaker 2>out and said that this deal would be credit negative

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<v Speaker 2>for the combined company. Have you taken steps to address that.

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<v Speaker 3>Nobody has reached out to us, including the credit agencies,

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<v Speaker 3>but the pro forma company is going to be investment grade.

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<v Speaker 2>We talked to the beginning of the conversation about now

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<v Speaker 2>shareholders improving, increasing sorry the company's authorized share count. Does

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<v Speaker 2>that allow you to do something new that you couldn't

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<v Speaker 2>have otherwise done in the context of the eBay deal.

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<v Speaker 4>Yeah, I mean yes it does.

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<v Speaker 1>And what would that be.

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<v Speaker 3>By the business by eBay.

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<v Speaker 2>Are posted on x that you were coming on the show,

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<v Speaker 2>and you know, in the context of what you've done

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<v Speaker 2>with financial mechanics of late, you know, the question that

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<v Speaker 2>existing games Stop shareholders sent me over and over again is,

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<v Speaker 2>you know, you're asking them to accept pretty significant dilution,

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<v Speaker 2>and they're basically asking, like, what's the payoff for them

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<v Speaker 2>in accepting that dilution.

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<v Speaker 4>There's different forms of dilution.

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<v Speaker 3>Most dilution is dilutive to shareholders. When you're buying a

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<v Speaker 3>business and I've committed to pulling two billion dollars.

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<v Speaker 4>Of costs out. So if you do the math and.

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<v Speaker 3>Buying a business for fifty six billion, and the business

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<v Speaker 3>is forecasted to make over three and a half billion,

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<v Speaker 3>that's the consensus for twenty twenty six plus what I

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<v Speaker 3>would be pulling out in costs, so you're at over

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<v Speaker 3>five and a half billion of ebadah, and then the

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<v Speaker 3>ability to take this platform and build a much much

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<v Speaker 3>larger business.

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<v Speaker 4>The upside is huge.

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<v Speaker 3>So I wouldn't go and buy a business if I

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<v Speaker 3>didn't think I can take it from fifty six billion

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<v Speaker 3>and turn it into multiples larger.

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<v Speaker 4>So it's a creative to shareholders.

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<v Speaker 3>But most of the time when companies are issuing shares,

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<v Speaker 3>it's dilutive and earnings per share goes down. In this case,

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<v Speaker 3>it's a different story. But most of the time you

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<v Speaker 3>have management teams. A good example is this company that

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<v Speaker 3>collect tons of risk free compensation and they're not aligned

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<v Speaker 3>with shareholders.

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<v Speaker 4>In this case, that's not the case.

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<v Speaker 2>You had the letter from TD you said earlier you

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<v Speaker 2>were going to put five hundred million dollars of your

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<v Speaker 2>own money into this transaction. Outside of that, Is there

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<v Speaker 2>any other financing support, any other parties that since mid

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<v Speaker 2>May you've pulled into it.

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<v Speaker 3>We've had a lot of parties come to us, and

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<v Speaker 3>there's been a lot of interest from the capital markets.

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<v Speaker 2>We're live on Bloomberg Television and Bloomberg Radio with Ryan Cohen,

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<v Speaker 2>the CEO of game Stop. We're talking about Ryan and

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<v Speaker 2>gamestopspid to buy eBay. Really simple question. Has anyone from eBay,

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<v Speaker 2>the management team or the board reached back out to

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<v Speaker 2>you or responded to you in this inter in period.

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<v Speaker 3>No.

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<v Speaker 4>I hope they do, but.

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<v Speaker 3>They're entrenched and they're hiding behind their advisors.

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<v Speaker 2>If I go to Teddy dot com on any browser,

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<v Speaker 2>I'm diverted back to gamestock dot com.

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<v Speaker 3>Why I'm focused on game Stop.

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<v Speaker 2>The roost of the question is, let's say that you

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<v Speaker 2>proceed with this. There's a very wide range of opinion speculation. Basically,

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<v Speaker 2>why does Ryan Cohen want to buy eBay? At one

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<v Speaker 2>extreme is the idea that you just want to be

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<v Speaker 2>the CEO of eBay rather than GameStop. At the other

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<v Speaker 2>end is the idea that you have a bigger plan,

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<v Speaker 2>a master plan. You kind of talked about it a

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<v Speaker 2>little bit earlier, but what's the reality here? What is

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<v Speaker 2>the bigger picture for a combined entity? Or referencing Teddy

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<v Speaker 2>dot com, there's some history there, but a sort of

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<v Speaker 2>can conglomerate. It's a holding company.

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<v Speaker 3>eBay is a platform that I can build into something

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<v Speaker 3>much more profitable and much larger. The ability to take

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<v Speaker 3>game stop stores and our experience in gaming and refurbished

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<v Speaker 3>tech and collectibles combined with eBay and be a leader

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<v Speaker 3>in live commerce, build out an in game digital marketplace,

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<v Speaker 3>use the stores for the same day authentication, and ultimately

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<v Speaker 3>pull down pull out significant costs, and none of these

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<v Speaker 3>things come at the expense of growth. It's actually the opposite.

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<v Speaker 3>The more efficient you get, the easier it is to grow.

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<v Speaker 3>It makes too much sense. So that's why I want

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<v Speaker 3>to business. That's why I want to buy it. It's

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<v Speaker 3>not that complicated. There is such overlap between the businesses,

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<v Speaker 3>and my experience is in e commerce.

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<v Speaker 1>Right, are you prepared to improve the offer?

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<v Speaker 4>Ryan, I'm not going to negotiate against myself, but.

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<v Speaker 1>That might be what it takes.

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<v Speaker 4>We'll see what happens ed.

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<v Speaker 2>You've talked about this a little bit recently. A lot

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<v Speaker 2>of people point out to me you've done a number

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<v Speaker 2>of interviews in quick succession, Right what happens to eBay

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<v Speaker 2>just keeps saying.

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<v Speaker 1>No.

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<v Speaker 3>Ultimately, it's going to be the owners of the business

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<v Speaker 3>that are going to decide who's more competent, who's more

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<v Speaker 3>aligned with shareholders, and who's more capable of building a much,

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<v Speaker 3>much larger business. So the management team can only aide

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<v Speaker 3>for so long. And I would love for this to

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<v Speaker 3>be a collaborative process and a consensual that's my preference,

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<v Speaker 3>that's number one. But if that doesn't happen, then it's

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<v Speaker 3>going to be shareholders' decision because they're the owners of

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<v Speaker 3>the business.

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<v Speaker 1>Right.

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<v Speaker 2>I do want to talk a lot more about the

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<v Speaker 2>game Stop business, a lot more about eBay, and we're

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<v Speaker 2>going to take a break and come back and do

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<v Speaker 2>that talk about what's really happening. I have a final

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<v Speaker 2>question from the audience that I promised I would put

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<v Speaker 2>to you, and it's from game Stop shareholders. A lot

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<v Speaker 2>of game Stop shareholders have asked about the warrants that

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<v Speaker 2>expire in October. You know, another recent or relatively recent

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<v Speaker 2>financial tracks action from the company. What should they expect

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<v Speaker 2>happens with those warrants between now in October of this year.

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<v Speaker 4>I don't have a crystal wall. I can't answer that question.

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<v Speaker 2>Okay, their expectation is that when they expire, I think

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<v Speaker 2>the date over twenty six is that's the outcome.

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<v Speaker 3>Ed people that have invested alongside me when it comes

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<v Speaker 3>to or a game stop and me committing five hundred

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<v Speaker 3>million dollars into eBay, they've done They've done very very well.

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<v Speaker 4>So I don't have a crystal ball.

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<v Speaker 3>I can't predict the future, nor can anyone that I've

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<v Speaker 3>ever met.

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<v Speaker 4>But GameStop is a business that.

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<v Speaker 3>Was on the brink of bankruptcy and everybody was betting

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<v Speaker 3>against it for a good reason, and now the company

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<v Speaker 3>is making more money than it's ever made in its history.

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<v Speaker 2>Ryan Cohen, CEO game Stop, you're sticking around, We're going

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<v Speaker 2>to take a break and then we're going to talk

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<v Speaker 2>about that business, GameStop and what it's doing.

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<v Speaker 1>We'll be right back. This is Bloomberg Tech.

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<v Speaker 2>Okay, we're live on Bloomberg Tech with GameStop CEO Ryan Cohen.

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<v Speaker 2>Let's put the eBay deal potential deal aside for a moment.

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<v Speaker 2>Whatever happens with eBay. Game stops so one of the

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<v Speaker 2>biggest names in gaming. I get a lot of questions

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<v Speaker 2>about that, and Ryan, if you're up for it, let's

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<v Speaker 2>start with Grand Theft Auto six. You know it's expected

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<v Speaker 2>to be one of the biggest entertainment launches ever. You

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<v Speaker 2>go to GameStop dot com, pre orders are available. What

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<v Speaker 2>are you seeing? What a customer is telling you?

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<v Speaker 3>Ed, I want to go back and talk about eBay.

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<v Speaker 3>I want to know if you wanted to build, if

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<v Speaker 3>you wanted to build the trillion dollar.

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<v Speaker 4>Business, and.

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<v Speaker 3>You had the existing management team. Guy running the company

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<v Speaker 3>makes thirty million bucks a year, hasn't bought a single

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<v Speaker 3>share in the open market, and then you have someone

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<v Speaker 3>that's committed five hundred million might me, So we don't

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<v Speaker 3>have to talk in hypotheticals. Who's more competent and capable

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<v Speaker 3>of building a larger business. I want you to look

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<v Speaker 3>at your viewers in the eyes and tell them, are

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<v Speaker 3>you going to bet on an entrench management team running

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<v Speaker 3>the business or me someone I went head to head

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<v Speaker 3>against Amazon selling thirty pound bags of dog food, turned

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<v Speaker 3>around a very tough situation at GameStop, and now the

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<v Speaker 3>company is making lots of money.

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<v Speaker 4>I really want to know your opinion, Ryan.

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<v Speaker 2>I'm not gonna I'm not here to answer the question.

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<v Speaker 2>The audience doesn't care what I think about this deal.

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<v Speaker 2>They're here for you. But the link to grand theft

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<v Speaker 2>Auto six for what it's worth. GameStop has twenty two

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<v Speaker 2>hundred stores across the jurisdictions it operates in. Right, it

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<v Speaker 2>sells hardware, video games, consoles that are going discless at

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<v Speaker 2>some point you need to hire people for those stores.

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<v Speaker 2>People are looking at what they know about the proposed

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<v Speaker 2>structure of this deal that's on the table and trying

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<v Speaker 2>to understand, in part what we talked about earlier, right,

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<v Speaker 2>taking the costs out of the combined business, to understand

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<v Speaker 2>what the plan is here, what the master plan is

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<v Speaker 2>for the combined entity.

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<v Speaker 1>So let's go with that.

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<v Speaker 2>Like, what is the synergistic play here between eBay, the

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<v Speaker 2>eco moss business, and GameStop, which right now is a

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<v Speaker 2>brick and mortar business selling video games, consoles, collectibles.

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<v Speaker 4>We're going to unlock live commerce.

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<v Speaker 3>We're going to use the stores for same day authentication.

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<v Speaker 3>I'll give you an example. Let's just talk about trading

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<v Speaker 3>cards right now. Right the biggest mast shoe on eBay

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<v Speaker 3>is fraud. So they've done really well on authenticity guarantee

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<v Speaker 3>because you know, when you buy an item now and

0:14:30.040 --> 0:14:30.880
<v Speaker 3>it's got the AG.

0:14:30.960 --> 0:14:33.000
<v Speaker 4>Certification, it's legit.

0:14:33.800 --> 0:14:38.000
<v Speaker 3>It's going through a centralized model right now, so the

0:14:38.120 --> 0:14:40.880
<v Speaker 3>sellers shipping it costs a lot of money. There's a

0:14:40.880 --> 0:14:45.560
<v Speaker 3>few fulfillment centers, take some time, and then it goes

0:14:45.680 --> 0:14:50.600
<v Speaker 3>to the buyer can ultimately go Once these businesses are together,

0:14:50.680 --> 0:14:52.640
<v Speaker 3>we've got sixteen hundred nodes.

0:14:53.160 --> 0:14:54.960
<v Speaker 4>They're within a fifteen minute.

0:14:54.760 --> 0:14:57.440
<v Speaker 3>Drive of eighty percent of the population, and you can

0:14:57.520 --> 0:15:00.760
<v Speaker 3>authenticate the item same day for cheaper.

0:15:01.400 --> 0:15:05.720
<v Speaker 4>So that's just one item. Live commerce, the business is

0:15:05.960 --> 0:15:06.880
<v Speaker 4>getting smoked.

0:15:07.440 --> 0:15:11.040
<v Speaker 3>Live commerce is a trillion dollar addressable market it's really

0:15:11.040 --> 0:15:14.040
<v Speaker 3>really big in Asia. There's some competitors in the US

0:15:14.080 --> 0:15:16.760
<v Speaker 3>that are doing very very well. eBay is not doing

0:15:16.880 --> 0:15:20.080
<v Speaker 3>very well. So the ability to go and use our

0:15:20.240 --> 0:15:24.920
<v Speaker 3>nodes for as studios and as fulfillment and logistics for

0:15:25.040 --> 0:15:29.480
<v Speaker 3>content creators is huge. And then we have a bit

0:15:29.480 --> 0:15:32.760
<v Speaker 3>of experience in gaming when it comes to the buy

0:15:32.920 --> 0:15:36.800
<v Speaker 3>trade and someone by the buy selling trade model. So

0:15:36.880 --> 0:15:40.560
<v Speaker 3>the ability for us to use eBay's rails to build

0:15:40.600 --> 0:15:45.640
<v Speaker 3>out an in game digital marketplace is huge. So those

0:15:45.640 --> 0:15:50.840
<v Speaker 3>are just some of the opportunities to take this business

0:15:51.040 --> 0:15:54.840
<v Speaker 3>and build it into something that the existing management team

0:15:54.880 --> 0:15:57.560
<v Speaker 3>on a standalone basis can never do.

0:16:00.120 --> 0:16:04.120
<v Speaker 2>So the situation is collectibles are clearly a central part

0:16:04.600 --> 0:16:07.000
<v Speaker 2>of the plan. Right If this deal goes through the

0:16:07.000 --> 0:16:11.720
<v Speaker 2>Combined entity on gaming, it sounds like you are preparing

0:16:11.760 --> 0:16:15.120
<v Speaker 2>for a world where gaming is discless. There will be

0:16:15.160 --> 0:16:19.520
<v Speaker 2>a trade in secondhand trade in but that this is

0:16:19.560 --> 0:16:22.520
<v Speaker 2>the umbrella point, right Like if the hardware makers Sony

0:16:22.800 --> 0:16:26.640
<v Speaker 2>Xbox are reportedly moving to diskless on the console side,

0:16:27.160 --> 0:16:32.120
<v Speaker 2>future game launches are digital only. Where does that fit

0:16:32.200 --> 0:16:36.120
<v Speaker 2>in for your business plan and the combined entity?

0:16:36.840 --> 0:16:37.640
<v Speaker 4>It doesn't matter.

0:16:38.080 --> 0:16:41.840
<v Speaker 3>It doesn't matter at all software It mattered in the past.

0:16:42.520 --> 0:16:45.480
<v Speaker 3>Software today makes up less than twelve percent of the

0:16:45.520 --> 0:16:49.880
<v Speaker 3>business and collectibles makes up over half the business, So

0:16:49.960 --> 0:16:52.040
<v Speaker 3>it's totally totally irrelevant.

0:16:54.960 --> 0:16:58.200
<v Speaker 2>Is there anything that you learned from the NFT marketplace

0:16:59.400 --> 0:17:03.120
<v Speaker 2>experiment a game Stop that you you think you can

0:17:03.120 --> 0:17:05.960
<v Speaker 2>put into practice if the deal goes through in this

0:17:06.000 --> 0:17:06.840
<v Speaker 2>combined entity.

0:17:06.840 --> 0:17:08.560
<v Speaker 1>What was the takeaway for you from that?

0:17:10.480 --> 0:17:11.200
<v Speaker 4>What does that mean?

0:17:13.720 --> 0:17:15.000
<v Speaker 1>Game Stop has looked at.

0:17:15.040 --> 0:17:19.080
<v Speaker 2>Digital business lines outside of the physical world. What did

0:17:19.080 --> 0:17:21.320
<v Speaker 2>you learn from game Stop looking at those markets?

0:17:24.000 --> 0:17:26.159
<v Speaker 4>Do you know how much money game Stop is making today?

0:17:26.880 --> 0:17:27.240
<v Speaker 1>Please?

0:17:28.000 --> 0:17:30.520
<v Speaker 3>One hundred and forty three million in Q one buyer

0:17:30.600 --> 0:17:32.600
<v Speaker 3>stop braining earnings in the company's history.

0:17:32.960 --> 0:17:36.840
<v Speaker 1>There was surprise at the strength of earnings recently. But again,

0:17:37.040 --> 0:17:37.679
<v Speaker 1>you know the audience.

0:17:37.680 --> 0:17:40.480
<v Speaker 3>Does everybody in the everybody in the media wants game

0:17:40.560 --> 0:17:41.359
<v Speaker 3>Stop to fail?

0:17:41.600 --> 0:17:43.520
<v Speaker 4>Explain that to me ed?

0:17:43.960 --> 0:17:49.240
<v Speaker 3>Why everybody in the media, in the mainstream media wants

0:17:49.359 --> 0:17:53.600
<v Speaker 3>game Stop to fail? You've got there's nothing more American

0:17:54.359 --> 0:17:58.200
<v Speaker 3>then game Stop committing its balance sheet and this company,

0:17:58.480 --> 0:18:03.720
<v Speaker 3>which is a great American company, eBay being aligned with shareholders,

0:18:04.640 --> 0:18:10.000
<v Speaker 3>that's how this country was built. Is risking your own capital,

0:18:10.520 --> 0:18:12.800
<v Speaker 3>and if the business succeeds, you make money, and if

0:18:12.800 --> 0:18:15.520
<v Speaker 3>the business fails, you'll lose a lot of money. And

0:18:15.600 --> 0:18:19.920
<v Speaker 3>what I want to understand is why everybody wants Game.

0:18:19.720 --> 0:18:24.960
<v Speaker 4>Stop to fail. Both it's core business and in this transaction.

0:18:27.560 --> 0:18:31.440
<v Speaker 3>What world do we live in where we're betting against

0:18:31.920 --> 0:18:38.639
<v Speaker 3>We're we're rooting for the an entrenched management team that

0:18:38.680 --> 0:18:42.399
<v Speaker 3>has no skin in the game and someone that's risking

0:18:42.440 --> 0:18:45.080
<v Speaker 3>their own capital. And there's nothing more American than that

0:18:46.720 --> 0:18:48.600
<v Speaker 3>you want us to fail. I want to understand that.

0:18:50.280 --> 0:18:53.480
<v Speaker 1>Ryan, I'm a technology journalist. I host the Tech show

0:18:53.480 --> 0:18:54.159
<v Speaker 1>on Bloomberg.

0:18:54.320 --> 0:18:59.080
<v Speaker 2>When this deal broke in May, I my team invited

0:18:59.119 --> 0:19:01.359
<v Speaker 2>you onto the show, and it took a number of months.

0:19:02.080 --> 0:19:04.639
<v Speaker 2>You're now here on the show, and in advance of

0:19:04.680 --> 0:19:07.399
<v Speaker 2>you coming on the show, I posted on social media

0:19:07.480 --> 0:19:09.520
<v Speaker 2>that you were coming on the show. I always give

0:19:09.560 --> 0:19:13.040
<v Speaker 2>our audience opportunity to ask their questions. That's what we're

0:19:13.080 --> 0:19:17.280
<v Speaker 2>doing here, giving you an opportunity to present. I think

0:19:17.320 --> 0:19:21.040
<v Speaker 2>that the one outstanding thing is people asking when will

0:19:21.080 --> 0:19:23.760
<v Speaker 2>they see a sort of codified plan from you, a

0:19:23.800 --> 0:19:27.119
<v Speaker 2>business plan presented for this combined entity.

0:19:27.119 --> 0:19:27.720
<v Speaker 1>On paper.

0:19:28.400 --> 0:19:30.119
<v Speaker 2>You've explained a bit of it in the course of

0:19:30.119 --> 0:19:33.720
<v Speaker 2>this conversation. But that's why the audience is here to

0:19:33.800 --> 0:19:37.160
<v Speaker 2>listen to you to explain the future of a business

0:19:37.160 --> 0:19:42.160
<v Speaker 2>that is a combination of gamestot and eBay.

0:19:42.960 --> 0:19:47.160
<v Speaker 3>I'm going to bring that plan directly to shareholders. It's

0:19:47.280 --> 0:19:50.280
<v Speaker 3>not going to be through a TV show.

0:19:50.320 --> 0:19:52.000
<v Speaker 4>You can count on it. It's going to be directly

0:19:52.040 --> 0:19:52.760
<v Speaker 4>to shareholders.

0:19:54.240 --> 0:19:56.040
<v Speaker 1>And do you have a timeline for that, Ryan.

0:19:58.119 --> 0:20:01.639
<v Speaker 3>We've had an in of parties that have come to

0:20:01.720 --> 0:20:04.120
<v Speaker 3>USK and they're interested.

0:20:04.200 --> 0:20:08.080
<v Speaker 4>In due course, the plan is going to be made public, but.

0:20:11.600 --> 0:20:13.320
<v Speaker 1>In the shortest plan and also.

0:20:13.160 --> 0:20:17.520
<v Speaker 3>Building a much larger business. I mean, you know, what

0:20:17.960 --> 0:20:19.400
<v Speaker 3>is the goal of business?

0:20:19.680 --> 0:20:20.600
<v Speaker 4>What is my goal?

0:20:21.200 --> 0:20:22.720
<v Speaker 3>I own a lot of stock and I don't have

0:20:22.760 --> 0:20:27.720
<v Speaker 3>any perverse incentives, so it's to make the business a

0:20:27.760 --> 0:20:30.960
<v Speaker 3>lot more profitable and to maximize shareholder value.

0:20:31.119 --> 0:20:33.680
<v Speaker 4>So that's the plan. It's not that complicated.

0:20:34.240 --> 0:20:38.600
<v Speaker 3>And I've spoken about huge growth areas within cutting costs.

0:20:38.960 --> 0:20:43.040
<v Speaker 3>That's just short term, but live commerce and building out

0:20:43.200 --> 0:20:47.639
<v Speaker 3>an in game digital marketplace. So I've shared that with you,

0:20:48.160 --> 0:20:51.640
<v Speaker 3>But everyone in the past have said, what's the business plan?

0:20:51.720 --> 0:20:52.680
<v Speaker 4>What's the business plan?

0:20:53.480 --> 0:20:57.320
<v Speaker 3>But they only do that with game Stop for whatever reason. Well,

0:20:57.440 --> 0:21:01.000
<v Speaker 3>you know what the business plan is to make money.

0:21:01.720 --> 0:21:05.760
<v Speaker 3>Game Stop just reported its highest earnings in the company's

0:21:06.080 --> 0:21:10.440
<v Speaker 3>history with a fraction of the stores, and everybody in

0:21:10.480 --> 0:21:12.520
<v Speaker 3>the media said GameStop was going to fail.

0:21:12.560 --> 0:21:14.439
<v Speaker 4>So the plan is to make more money.

0:21:14.600 --> 0:21:18.199
<v Speaker 3>The plan is to maximize shareholder value. Am I going

0:21:18.240 --> 0:21:22.840
<v Speaker 3>to go and share my proprietary plan and every single

0:21:23.000 --> 0:21:25.720
<v Speaker 3>detail and give it out to my competitors.

0:21:26.400 --> 0:21:28.560
<v Speaker 4>That'd be a pretty stupid thing to do.

0:21:30.800 --> 0:21:33.600
<v Speaker 2>Ryan, We have literally thirty seconds left in the show. Again,

0:21:34.760 --> 0:21:37.240
<v Speaker 2>are you prepared to raise your offer for eBay? You

0:21:37.440 --> 0:21:40.680
<v Speaker 2>set out your vision, but the action you're willing to

0:21:40.720 --> 0:21:41.400
<v Speaker 2>take to do it.

0:21:44.080 --> 0:21:47.080
<v Speaker 3>I'm not going to call my shots, but we're coming

0:21:47.080 --> 0:21:48.439
<v Speaker 3>for eBay one way or another.

0:21:50.800 --> 0:21:55.880
<v Speaker 2>Ryan Cohen, CEO of GameStop, and extended conversation on Bloomberg Tech.

0:21:55.960 --> 0:21:57.080
<v Speaker 1>Thank you for your time.