GameStop CEO Ryan Cohen’s $56B Plan to Take Over eBay
When building a business, prioritize will over skill. Ryan Cohen's hiring principle is simple: look for relentless, driven people willing to 'go all in' rather than perfect résumés. A woman who repeatedly applied for a customer service role at Chewy, despite lacking traditional experience, became on
1h 3mKey Takeaway
When building a business, prioritize will over skill. Ryan Cohen's hiring principle is simple: look for relentless, driven people willing to 'go all in' rather than perfect résumés. A woman who repeatedly applied for a customer service role at Chewy, despite lacking traditional experience, became one of their best hires because she had unstoppable drive. Focus on finding 'fellow psychopaths'—people as obsessed with winning as you are. A-players only tolerate other A-players, creating a self-reinforcing culture of excellence.
Episode Overview
Ryan Cohen, founder of Chewy and CEO of GameStop, discusses his journey from building a $3.35 billion pet e-commerce business to turning around GameStop and pursuing an acquisition of eBay. He shares lessons on execution, management, identifying undervalued businesses, and why he prioritizes will over skill when building teams.
Key Insights
Compete on Pennies, Not Relationships
In low-margin businesses like pet food or retail, supplier relationships should be transactional, not friendly. If suppliers send gifts, you're overpaying. If they never want to negotiate with you again, you're getting the right price. Most people default to being nice and building relationships, but when you're losing money, sustainability requires aggressive negotiation on every penny.
Life's Too Short to Build Small
Chewy could have been a profitable $100-500 million business with less marketing spend, but Cohen chose aggressive growth to achieve market leadership. The same philosophy drives his GameStop strategy and eBay acquisition attempt. Operating within your comfort zone limits impact—pursue opportunities that create transformational scale, even if they're riskier.
Apply the Right Playbook to the Right Business
Cohen initially tried to make GameStop 'more like Chewy,' hiring e-commerce executives and applying the same growth strategies. This failed because the businesses were fundamentally different—Chewy had recurring purchases and sticky cohorts; GameStop needed inventory discipline and focus on pre-owned/collectibles. Recognize when your proven playbook doesn't fit the new context.
Bet Against Consensus When You See Unrealized Value
GameStop was universally hated—shorted to oblivion, dismissed by media, expected to fail for 15 years. Cohen saw opportunity in the pessimism: an established business with a loyal customer base, an upcoming console cycle, and terrible management extracting value without reinvesting. Running into a 'burning house' when everyone else is running out often reveals the best investment opportunities.
Stay Hypervigilant on Every Detail
Cohen personally managed Google AdWords campaigns until 4-5 AM, negotiated directly with all major suppliers, and monitored every number 24/7. In low-margin businesses, the difference between success and failure is pennies. Leaders who delegate too early or lose touch with operational details miss the small optimizations that compound into massive advantages.
Notable Quotes
"I look for will over skill and I had a woman that was running customer service as an example and she came from uh she was working in like an old people's home and she applied for the job many times and we just we didn't think she was qualified and we looked over her resume and she kept on applying. She was relentless."
"A's only put up with A's."
"If our suppliers are sending us gifts in the mail, that's a really bad sign. It means we're overpaying. If our suppliers are telling us they never want to speak to us again, it means we're getting the right price."
"Life is too short to do it small. So, the If you look at how complementary the and and and as we've gone into the collectible space, space, space, I've come to appreciate eBay uh uh uh differently."
"Everyone hates GameStop and it seems like everyone in the media basically wants us to fail and wants them to succeed and you've got a board that's making hundreds of thousands of dollars a year. They don't buy stock with their own money."
Action Items
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1
Prioritize Will Over Credentials When Hiring
Look for candidates who demonstrate relentless persistence and drive, even if their résumé doesn't perfectly match the role. Track how many times someone applies, how they respond to rejection, and their intrinsic motivation to work with you.
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2
Negotiate Aggressively with Suppliers
In low-margin businesses, treat supplier relationships as transactional. Focus on getting the lowest possible prices by buying at scale, moving from pallets to truckloads, negotiating direct relationships, and avoiding relationship-building that leads to overpaying.
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3
Stay Close to Operational Details
Even as CEO, maintain hands-on involvement in critical areas like marketing spend, supplier negotiations, and key metrics. Set up systems to monitor pennies-level decisions that compound into major competitive advantages.
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4
Bet on Pessimism with Strong Fundamentals
Identify established businesses with solid historical cash flows that are out of favor. Look for situations where market consensus is overwhelmingly negative but underlying fundamentals (customer loyalty, market position, upcoming catalysts) suggest the business can survive and thrive.