eBay is worth far more than $125/share. He believes he can run the company efficiently, cut $2B in costs (sales/marketing and corporate overhead), increase earnings, and pay down leverage. He would roll 100% of equity into the combined company.
GameStop has been turned around from a near-bankrupt brick-and-mortar retailer into a profitable collectibles leader with strong financials: collectibles now 42% of revenue, 14% YoY growth, SG&A cut, $9.7B in cash, $333M free cash flow, and a newly authorized share repurchase. Despite the market still dismissing it as a meme stock, the business is fundamentally much stronger and Cohen has never sold a share, signalling deep conviction.