GameStop CEO Ryan Cohen’s $56B Plan to Take Over eBay

Everyone hates GameStop and it seems Everyone hates GameStop and it seems like everyone in the media basically like everyone in the media basically like everyone in the media basically wants us to fail and wants them to wants us to fail and wants them to wants us to fail and wants them to succeed and you've got a board that's succeed and you've got a board that's succeed and you've got a board that's making hundreds of thousands of dollars making hundreds of thousands of dollars making hundreds of thousands of dollars a year. They don't buy stock with their a year. They don't buy stock with their a year. They don't buy stock with their own money. own money. own money. They end up showing up to a handful of They end up showing up to a handful of They end up showing up to a handful of board meetings and they're making a board meetings and they're making a board meetings and they're making a fortune. You've got a management team fortune. You've got a management team fortune. You've got a management team that is grossly overpaid. There's that is grossly overpaid. There's that is grossly overpaid. There's nothing more American than basically nothing more American than basically nothing more American than basically risking your own capital. So, why does risking your own capital. So, why does risking your own capital. So, why does everyone want us to fail? everyone want us to fail? everyone want us to fail? >> I'm going all in. >> AppLovin started with an $8 domain and >> AppLovin started with an $8 domain and no VC funding. They built anyway and no VC funding. They built anyway and no VC funding. They built anyway and became one of the largest ad platforms became one of the largest ad platforms became one of the largest ad platforms in the world. Now, they're bringing that in the world. Now, they're bringing that in the world. Now, they're bringing that same engine to e-commerce [music] same engine to e-commerce [music] same engine to e-commerce [music] through AppLovin ads. Your ads run through AppLovin ads. Your ads run through AppLovin ads. Your ads run inside mobile games reaching over a inside mobile games reaching over a inside mobile games reaching over a billion people with full screen billion people with full screen billion people with full screen distraction-free attention. The platform distraction-free attention. The platform distraction-free attention. The platform finds buyers and optimizes for profit. finds buyers and optimizes for profit. finds buyers and optimizes for profit. You set the target, it does the rest. A You set the target, it does the rest. A You set the target, it does the rest. A cookware brand doing $4 million tried cookware brand doing $4 million tried cookware brand doing $4 million tried AppLovin ads, hit 16 million, turned AppLovin ads, hit 16 million, turned AppLovin ads, hit 16 million, turned profitable, and they're on pace for $80 profitable, and they're on pace for $80 profitable, and they're on pace for $80 million this year. Visit million this year. Visit million this year. Visit applovin.com/allin applovin.com/allin applovin.com/allin to launch your first campaign today. to launch your first campaign today. to launch your first campaign today. >> I'm going all in. >> I'm going all in. >> I'm going all in. >> Ryan Cohen, welcome to the All-In >> Ryan Cohen, welcome to the All-In >> Ryan Cohen, welcome to the All-In interview. Thanks for being here. interview. Thanks for being here. interview. Thanks for being here. >> Thank you for having me. >> Thank you for having me. >> Thank you for having me. >> I think it's been like a decade, >> I think it's been like a decade, >> I think it's been like a decade, which is crazy how old we get, since you which is crazy how old we get, since you which is crazy how old we get, since you and I last had dinner and I last had dinner and I last had dinner in New York. in New York. in New York. This was before several chapters of your This was before several chapters of your This was before several chapters of your life unfolded. life unfolded. life unfolded. And it's great to be talking with you And it's great to be talking with you And it's great to be talking with you today. You're doing something really today. You're doing something really today. You're doing something really interesting right now trying to acquire interesting right now trying to acquire interesting right now trying to acquire and run eBay, which obviously is a big and run eBay, which obviously is a big and run eBay, which obviously is a big story right now that takes us back 25-30 story right now that takes us back 25-30 story right now that takes us back 25-30 years to the start of the internet. years to the start of the internet. years to the start of the internet. But, I want to talk a little bit about But, I want to talk a little bit about But, I want to talk a little bit about your story first, if that's okay. And your story first, if that's okay. And your story first, if that's okay. And I'd love for folks that are watching I'd love for folks that are watching I'd love for folks that are watching this or listening to this to to learn a this or listening to this to to learn a this or listening to this to to learn a little bit about you little bit about you little bit about you and the journey you've been on that and the journey you've been on that and the journey you've been on that brings you to this moment. Maybe we can brings you to this moment. Maybe we can brings you to this moment. Maybe we can go back to the the business you started, go back to the the business you started, go back to the the business you started, Chewy, Chewy, Chewy, if that's okay. if that's okay. if that's okay. >> Yes, definitely. >> Yes, definitely. >> Yes, definitely. >> Yeah, well, maybe tell me why you >> Yeah, well, maybe tell me why you >> Yeah, well, maybe tell me why you started Chewy. How did you get that idea started Chewy. How did you get that idea started Chewy. How did you get that idea and and how did you get into building and and how did you get into building and and how did you get into building this business this business this business from where you were coming from at that from where you were coming from at that from where you were coming from at that time? time? time? >> We were um >> We were um >> We were um wanted to build something online and we wanted to build something online and we wanted to build something online and we were uh about to launch an online were uh about to launch an online were uh about to launch an online jewelry website. jewelry website. jewelry website. Did not know anything about jewelry, Did not know anything about jewelry, Did not know anything about jewelry, went to a bunch of trade shows, bought went to a bunch of trade shows, bought went to a bunch of trade shows, bought hundreds of thousands dollars worth of hundreds of thousands dollars worth of hundreds of thousands dollars worth of inventory. inventory. inventory. Built the website, had the distribution, Built the website, had the distribution, Built the website, had the distribution, and then I was shopping in a and then I was shopping in a and then I was shopping in a neighborhood pet store. neighborhood pet store. neighborhood pet store. Uh I had a poodle and I was going every Uh I had a poodle and I was going every Uh I had a poodle and I was going every few weeks and few weeks and few weeks and it just hit me on one of my trips that I it just hit me on one of my trips that I it just hit me on one of my trips that I understood the product much better. It understood the product much better. It understood the product much better. It was a recurring revenue purchase. was a recurring revenue purchase. was a recurring revenue purchase. The market was still fragmented. The The market was still fragmented. The The market was still fragmented. The fact that there was still neighborhood fact that there was still neighborhood fact that there was still neighborhood pet stores at the time and they had not pet stores at the time and they had not pet stores at the time and they had not been disrupted by Petco and PetSmart was been disrupted by Petco and PetSmart was been disrupted by Petco and PetSmart was fascinating to me. And then you had you fascinating to me. And then you had you fascinating to me. And then you had you had Amazon which was established and had had Amazon which was established and had had Amazon which was established and had pet products since the '90s, but they pet products since the '90s, but they pet products since the '90s, but they hadn't really achieved real scale in the hadn't really achieved real scale in the hadn't really achieved real scale in the category. So, the vision was to category. So, the vision was to category. So, the vision was to replicate the same experience that I had replicate the same experience that I had replicate the same experience that I had at the neighborhood pet store, but do it at the neighborhood pet store, but do it at the neighborhood pet store, but do it online and do it at scale. And online and do it at scale. And online and do it at scale. And I looked at Amazon as bre- best I looked at Amazon as bre- best I looked at Amazon as bre- best practices when it came to supply chain. practices when it came to supply chain. practices when it came to supply chain. So, fast shipping, having a great So, fast shipping, having a great So, fast shipping, having a great selection, being competitively priced. selection, being competitively priced. selection, being competitively priced. And then the experience at the And then the experience at the And then the experience at the neighborhood pet store neighborhood pet store neighborhood pet store of knowing the products really well. And of knowing the products really well. And of knowing the products really well. And it was easy to be passionate about the it was easy to be passionate about the it was easy to be passionate about the pet category cuz I'm a pet owner and pet category cuz I'm a pet owner and pet category cuz I'm a pet owner and everyone we hired were pet owners. And everyone we hired were pet owners. And everyone we hired were pet owners. And the it was all about market leadership. the it was all about market leadership. the it was all about market leadership. It's a low margin business. Hindsight It's a low margin business. Hindsight It's a low margin business. Hindsight not necessarily the best idea to go not necessarily the best idea to go not necessarily the best idea to go head-to-head against Amazon selling head-to-head against Amazon selling head-to-head against Amazon selling 30-lb bags of pet food, but we executed 30-lb bags of pet food, but we executed 30-lb bags of pet food, but we executed really well, and we grew really quickly, really well, and we grew really quickly, really well, and we grew really quickly, and we had negative working capital, and and we had negative working capital, and and we had negative working capital, and so it was a business that was able to so it was a business that was able to so it was a business that was able to get uh billions of dollars in revenue get uh billions of dollars in revenue get uh billions of dollars in revenue and and not consume a lot of capital. and and not consume a lot of capital. and and not consume a lot of capital. >> How did you learn to execute well? >> How did you learn to execute well? >> How did you learn to execute well? So, at the time, you had little business So, at the time, you had little business So, at the time, you had little business experience prior to that. How did you experience prior to that. How did you experience prior to that. How did you learn those skills? What were the learn those skills? What were the learn those skills? What were the principles and the values that that made principles and the values that that made principles and the values that that made you you you excellent at operating that business? excellent at operating that business? excellent at operating that business? >> I understood from the beginning that >> I understood from the beginning that >> I understood from the beginning that uh the real competition was always uh the real competition was always uh the real competition was always Amazon, and they were world-class when Amazon, and they were world-class when Amazon, and they were world-class when it comes to supply chain. So, it comes to supply chain. So, it comes to supply chain. So, negotiating very fiercely with suppliers to get the very fiercely with suppliers to get the best product cost, and that meant best product cost, and that meant best product cost, and that meant getting to scale and going from buying getting to scale and going from buying getting to scale and going from buying pallets of dog food to truckloads of of pallets of dog food to truckloads of of pallets of dog food to truckloads of of dog food, and moving from distribution dog food, and moving from distribution dog food, and moving from distribution to direct, and buying generally, the to direct, and buying generally, the to direct, and buying generally, the more you buy, the lower the prices are more you buy, the lower the prices are more you buy, the lower the prices are going to be. Operating efficiently in going to be. Operating efficiently in going to be. Operating efficiently in the warehouses, and so labor the warehouses, and so labor the warehouses, and so labor optimization, warehouse management optimization, warehouse management optimization, warehouse management optimization, optimization, optimization, getting competitive prices with shipping getting competitive prices with shipping getting competitive prices with shipping carriers. It was a game of pennies, and carriers. It was a game of pennies, and carriers. It was a game of pennies, and we had you know, we were the the goal we had you know, we were the the goal we had you know, we were the the goal was to grow quickly and establish market was to grow quickly and establish market was to grow quickly and establish market leadership, and the difference between leadership, and the difference between leadership, and the difference between failure and success was, you know, failure and success was, you know, failure and success was, you know, pennies in the red is failure, and and pennies in the red is failure, and and pennies in the red is failure, and and and pennies in the black is success. So, and pennies in the black is success. So, and pennies in the black is success. So, uh we had to operate hyper-efficiently, uh we had to operate hyper-efficiently, uh we had to operate hyper-efficiently, and there was a lot of competition in and there was a lot of competition in and there was a lot of competition in the space. It wasn't a novel idea. I was the space. It wasn't a novel idea. I was the space. It wasn't a novel idea. I was going head-to-head against Amazon, and going head-to-head against Amazon, and going head-to-head against Amazon, and pets.com was in the backdrop. Um so, it pets.com was in the backdrop. Um so, it pets.com was in the backdrop. Um so, it made it very difficult to raise capital, made it very difficult to raise capital, made it very difficult to raise capital, but I'd say at a at a high level, the but I'd say at a at a high level, the but I'd say at a at a high level, the market underestimated not not the size of of the addressable not not the size of of the addressable market, but our execution. market, but our execution. market, but our execution. >> You know, as a customer, I've had lots >> You know, as a customer, I've had lots >> You know, as a customer, I've had lots of dogs, it was always such a great of dogs, it was always such a great of dogs, it was always such a great consumer experience. Did you personally consumer experience. Did you personally consumer experience. Did you personally put your finger on that or did you bring put your finger on that or did you bring put your finger on that or did you bring great people around you that understood great people around you that understood great people around you that understood consumer consumer consumer apart from the supply chain apart from the supply chain apart from the supply chain optimization, the labor optimization, optimization, the labor optimization, optimization, the labor optimization, getting the getting the getting the the cash flows to work right? Was there the cash flows to work right? Was there the cash flows to work right? Was there a lot on the consumer product angle that a lot on the consumer product angle that a lot on the consumer product angle that you spent time on with that business? you spent time on with that business? you spent time on with that business? >> When we looked at >> When we looked at >> When we looked at the cohorts, the cohorts, the cohorts, you could see the customers were very you could see the customers were very you could see the customers were very sticky and sticky and sticky and the the the Now, I I looked at it. The reason why I Now, I I looked at it. The reason why I Now, I I looked at it. The reason why I moved from jewelry to pet food was cuz moved from jewelry to pet food was cuz moved from jewelry to pet food was cuz it was a recurring item. So, I loved the it was a recurring item. So, I loved the it was a recurring item. So, I loved the fact that it was consumable and when we fact that it was consumable and when we fact that it was consumable and when we started Chewy for the first few years, started Chewy for the first few years, started Chewy for the first few years, we just focused on we just focused on we just focused on food, treats, litter, food, treats, litter, food, treats, litter, all of the things that people are buying all of the things that people are buying all of the things that people are buying all the time. all the time. all the time. So, So, So, the the vision and the idea was if we the the vision and the idea was if we the the vision and the idea was if we treat our customers well, they're going treat our customers well, they're going treat our customers well, they're going to continue shopping with us. to continue shopping with us. to continue shopping with us. And and that's what we did. And so, it And and that's what we did. And so, it And and that's what we did. And so, it was everything from the handwritten was everything from the handwritten was everything from the handwritten holiday cards to the pet portraits to holiday cards to the pet portraits to holiday cards to the pet portraits to 24/7 customer service. And 24/7 customer service. And 24/7 customer service. And uh if there was ever an issue, you know, uh if there was ever an issue, you know, uh if there was ever an issue, you know, we took care of the customer. And we took care of the customer. And we took care of the customer. And that um that's what happened and and the that um that's what happened and and the that um that's what happened and and the customers continued customers continued customers continued shopping with us. And and the best shopping with us. And and the best shopping with us. And and the best referrals are word of mouth. And um pet referrals are word of mouth. And um pet referrals are word of mouth. And um pet owners owners owners love to love to love to to tell their friends and fellow pet to tell their friends and fellow pet to tell their friends and fellow pet owners if they have a great experience. owners if they have a great experience. owners if they have a great experience. So, So, So, the thesis ultimately played out. the thesis ultimately played out. the thesis ultimately played out. >> So, for those who don't know, you built >> So, for those who don't know, you built >> So, for those who don't know, you built and sold the business in 2017 for $3.35 and sold the business in 2017 for $3.35 and sold the business in 2017 for $3.35 billion. billion. billion. Subsequently, there was an IPO and that Subsequently, there was an IPO and that Subsequently, there was an IPO and that business continued to trade up in value. business continued to trade up in value. business continued to trade up in value. So, you clearly executed well. But, uh So, you clearly executed well. But, uh So, you clearly executed well. But, uh help me understand how did you help me understand how did you help me understand how did you build and manage the leadership team, build and manage the leadership team, build and manage the leadership team, the management team, and the people the management team, and the people the management team, and the people around you to execute so well? What did around you to execute so well? What did around you to execute so well? What did you learn as a manager, as a CEO, as an you learn as a manager, as a CEO, as an you learn as a manager, as a CEO, as an operator operator operator when you were building Chewy? when you were building Chewy? when you were building Chewy? >> Staying on top of everything. Uh just >> Staying on top of everything. Uh just >> Staying on top of everything. Uh just it's 24/7, it's 24/7, it's 24/7, watching all of the numbers. I mean, I watching all of the numbers. I mean, I watching all of the numbers. I mean, I would uh would uh would uh stay in Google AdWords till 4:00 or 5:00 stay in Google AdWords till 4:00 or 5:00 stay in Google AdWords till 4:00 or 5:00 in the morning managing campaigns in the morning managing campaigns in the morning managing campaigns myself. Um myself. Um myself. Um I was negotiating directly with all of I was negotiating directly with all of I was negotiating directly with all of our major suppliers. I had a supplier our major suppliers. I had a supplier our major suppliers. I had a supplier that told me during one of our that told me during one of our that told me during one of our negotiations, actually, said it was like negotiations, actually, said it was like negotiations, actually, said it was like a one or one-year contract and he's a one or one-year contract and he's a one or one-year contract and he's like, "I'm so happy this is over. I like, "I'm so happy this is over. I like, "I'm so happy this is over. I never have to talk to you for Well, it never have to talk to you for Well, it never have to talk to you for Well, it was [laughter] it was basically another was [laughter] it was basically another was [laughter] it was basically another year." He's like, "I don't have to speak year." He's like, "I don't have to speak year." He's like, "I don't have to speak to you for the next year." It's like, to you for the next year." It's like, to you for the next year." It's like, "That was a compliment." I would And "That was a compliment." I would And "That was a compliment." I would And anytime someone else was doing the anytime someone else was doing the anytime someone else was doing the negotiation, I mean, it's negotiation, I mean, it's negotiation, I mean, it's counterintuitive. They want to build counterintuitive. They want to build counterintuitive. They want to build relationships with suppliers. The relationships with suppliers. The relationships with suppliers. The reality is is reality is is reality is is it's mostly transactional. And so, if it's mostly transactional. And so, if it's mostly transactional. And so, if our suppliers are sending us gifts in our suppliers are sending us gifts in our suppliers are sending us gifts in the mail, that's a really bad sign. It the mail, that's a really bad sign. It the mail, that's a really bad sign. It means we're overpaying. If our suppliers means we're overpaying. If our suppliers means we're overpaying. If our suppliers are telling us they never want to speak are telling us they never want to speak are telling us they never want to speak to us again, it means we're getting the to us again, it means we're getting the to us again, it means we're getting the right price. But, getting people into right price. But, getting people into right price. But, getting people into that framework is not easy cuz the the that framework is not easy cuz the the that framework is not easy cuz the the the path of least resistance is the path of least resistance is the path of least resistance is basically to get along and and uh basically to get along and and uh basically to get along and and uh to be nice. But, unfortunately, when to be nice. But, unfortunately, when to be nice. But, unfortunately, when you're building a business and you're you're building a business and you're you're building a business and you're losing money, you got to focus on on losing money, you got to focus on on losing money, you got to focus on on sustainability. So, just uh sustainability. So, just uh sustainability. So, just uh being on top of everything. being on top of everything. being on top of everything. >> And what about our people? I'm just >> And what about our people? I'm just >> And what about our people? I'm just trying to understand your your skill as trying to understand your your skill as trying to understand your your skill as a manager of people because clearly you a manager of people because clearly you a manager of people because clearly you did something right. Continue to execute did something right. Continue to execute did something right. Continue to execute at GameStop, which we'll get to in a at GameStop, which we'll get to in a at GameStop, which we'll get to in a minute. And I'm trying to understand how minute. And I'm trying to understand how minute. And I'm trying to understand how do you find great people do you find great people do you find great people and how do you hold people accountable and how do you hold people accountable and how do you hold people accountable and what are management techniques that and what are management techniques that and what are management techniques that you've developed for building a team and you've developed for building a team and you've developed for building a team and running a team? running a team? running a team? >> I look for will over skill and >> I look for will over skill and >> I look for will over skill and I had a woman that was running customer I had a woman that was running customer I had a woman that was running customer service as an example and she came from service as an example and she came from service as an example and she came from uh she was working in like an old uh she was working in like an old uh she was working in like an old people's home people's home people's home and she applied for the job many times and she applied for the job many times and she applied for the job many times and we just we didn't think she was and we just we didn't think she was and we just we didn't think she was qualified and we looked over her resume qualified and we looked over her resume qualified and we looked over her resume and she kept on applying. She was and she kept on applying. She was and she kept on applying. She was relentless. relentless. relentless. Uh Uh Uh so on paper she didn't necessarily have so on paper she didn't necessarily have so on paper she didn't necessarily have the right experience but she had drive, the right experience but she had drive, the right experience but she had drive, she was motivated, she wanted to work she was motivated, she wanted to work she was motivated, she wanted to work and she ended up being incredible. So I and she ended up being incredible. So I and she ended up being incredible. So I mean it was in general it was finding mean it was in general it was finding mean it was in general it was finding people that are diehards that are just people that are diehards that are just people that are diehards that are just willing to put everything in, go all in, willing to put everything in, go all in, willing to put everything in, go all in, no pun intended. Um and basically be as no pun intended. Um and basically be as no pun intended. Um and basically be as psychotic as as me and that was the team psychotic as as me and that was the team psychotic as as me and that was the team that we put together. It was just a that we put together. It was just a that we put together. It was just a bunch of fellow psychopaths. bunch of fellow psychopaths. bunch of fellow psychopaths. >> And psychopaths attract psychopaths and >> And psychopaths attract psychopaths and >> And psychopaths attract psychopaths and the engine is running at that point. the engine is running at that point. the engine is running at that point. >> Exactly. Exactly. >> Exactly. Exactly. >> Exactly. Exactly. >> Yeah. >> Yeah. >> Yeah. A's only put up with A's. A's only put up with A's. A's only put up with A's. >> Exactly. >> Exactly. >> Exactly. >> Yeah and do you regret selling Chewy >> Yeah and do you regret selling Chewy >> Yeah and do you regret selling Chewy when you did? when you did? when you did? Cuz I mean it went public at like what Cuz I mean it went public at like what Cuz I mean it went public at like what 20 billion market cap like 2 years 20 billion market cap like 2 years 20 billion market cap like 2 years later? later? later? >> I mean >> I mean >> I mean as soon as I sold it it just as soon as I sold it it just as soon as I sold it it just >> Yeah. >> Yeah. >> Yeah. >> [clears throat] >> [clears throat] >> [clears throat] >> Yeah. >> Yeah. >> Yeah. Like it's like were you a liability? No, Like it's like were you a liability? No, Like it's like were you a liability? No, I'm like what happened? I'm like what happened? I'm like what happened? >> Wise I mean >> Wise I mean >> Wise I mean you know typical if you talk to the you know typical if you talk to the you know typical if you talk to the investment bankers there were like you investment bankers there were like you investment bankers there were like you know we're getting a know we're getting a know we're getting a an amazing price and then all of a an amazing price and then all of a an amazing price and then all of a sudden it goes public and there's sudden it goes public and there's sudden it goes public and there's basically a lot more than what anyone basically a lot more than what anyone basically a lot more than what anyone had guessed. So nobody has a crystal had guessed. So nobody has a crystal had guessed. So nobody has a crystal ball. ball. ball. Um Um Um Chewy was my baby. I put a lot of uh Chewy was my baby. I put a lot of uh Chewy was my baby. I put a lot of uh I love that business and I love that business and I love that business and um um um So, yeah. And everything everything So, yeah. And everything everything So, yeah. And everything everything works out for a reason in life, one way works out for a reason in life, one way works out for a reason in life, one way or another. or another. or another. >> Yeah. >> Yeah. >> Yeah. >> And we wouldn't be having this >> And we wouldn't be having this >> And we wouldn't be having this conversation if I was still running conversation if I was still running conversation if I was still running Chewy. So, I or at least maybe we would, Chewy. So, I or at least maybe we would, Chewy. So, I or at least maybe we would, but it would be about dog food instead but it would be about dog food instead but it would be about dog food instead of something else. of something else. of something else. >> We'll be talking about how you built a >> We'll be talking about how you built a >> We'll be talking about how you built a hundred billion-dollar market cap dog hundred billion-dollar market cap dog hundred billion-dollar market cap dog food company, but food company, but food company, but >> Exactly. >> Exactly. >> Exactly. >> So, after you sold it, >> So, after you sold it, >> So, after you sold it, you kind of became a pretty active you kind of became a pretty active you kind of became a pretty active investor. Is that a fair statement about investor. Is that a fair statement about investor. Is that a fair statement about the next chapter for you? the next chapter for you? the next chapter for you? >> Uh I went activist for the first time, >> Uh I went activist for the first time, >> Uh I went activist for the first time, yeah. That's that's a that's an accurate yeah. That's that's a that's an accurate yeah. That's that's a that's an accurate statement. statement. statement. >> Well, you were like a pretty active like >> Well, you were like a pretty active like >> Well, you were like a pretty active like just general like you would buy and hold just general like you would buy and hold just general like you would buy and hold concentrated positions in in stocks. Is concentrated positions in in stocks. Is concentrated positions in in stocks. Is that is that fair at that stage? that is that fair at that stage? that is that fair at that stage? How did you pick companies? So, what did How did you pick companies? So, what did How did you pick companies? So, what did you look for and how did you make the you look for and how did you make the you look for and how did you make the investments you made? Maybe you can walk investments you made? Maybe you can walk investments you made? Maybe you can walk us through a couple of the us through a couple of the us through a couple of the stories of what you you went through at stories of what you you went through at stories of what you you went through at that stage. that stage. that stage. >> Um >> Um >> Um I looked for established businesses I looked for established businesses I looked for established businesses that have a that have a that have a strong historical track record of making strong historical track record of making strong historical track record of making money money money and typically are out of favor when it and typically are out of favor when it and typically are out of favor when it comes to passive or activist kind of comes to passive or activist kind of comes to passive or activist kind of investments. And so, investments. And so, investments. And so, um um um that's been my general framework. that's been my general framework. that's been my general framework. >> Why did you choose to go activist when >> Why did you choose to go activist when >> Why did you choose to go activist when you kind of started making these? Were you kind of started making these? Were you kind of started making these? Were you getting frustrated in conversations you getting frustrated in conversations you getting frustrated in conversations with management, decided to take it with management, decided to take it with management, decided to take it public, or was there a a model that you public, or was there a a model that you public, or was there a a model that you were kind of going after where you saw were kind of going after where you saw were kind of going after where you saw others have success others have success others have success with publicly calling out issues in with publicly calling out issues in with publicly calling out issues in businesses and driving change? businesses and driving change? businesses and driving change? >> Well, when it came to GameStop, >> Well, when it came to GameStop, >> Well, when it came to GameStop, originally it was a passive investment. originally it was a passive investment. originally it was a passive investment. And I owned under 5% and the CEO And I owned under 5% and the CEO And I owned under 5% and the CEO actually reached out to me cuz they were actually reached out to me cuz they were actually reached out to me cuz they were fighting um an activist fighting um an activist fighting um an activist and they wanted me to join the board. and they wanted me to join the board. and they wanted me to join the board. They thought I was basically going to be They thought I was basically going to be They thought I was basically going to be their friend. They're like, "Oh, this their friend. They're like, "Oh, this their friend. They're like, "Oh, this guy owns a few percent of the company guy owns a few percent of the company guy owns a few percent of the company and let's give him a board seat and and let's give him a board seat and and let's give him a board seat and he'll help us basically fend off he'll help us basically fend off he'll help us basically fend off um this activist." And so um this activist." And so um this activist." And so they kind of put the idea in my head. they kind of put the idea in my head. they kind of put the idea in my head. >> This is around 2020, right? >> This is around 2020, right? >> This is around 2020, right? >> It was yes, exactly. >> It was yes, exactly. >> It was yes, exactly. Uh Uh Uh so I was in in a place. Uh my father had so I was in in a place. Uh my father had so I was in in a place. Uh my father had just died recently and they offered me a just died recently and they offered me a just died recently and they offered me a single board seat and I'm like, "If I'm single board seat and I'm like, "If I'm single board seat and I'm like, "If I'm going to do this, you know, I looked at going to do this, you know, I looked at going to do this, you know, I looked at the board and they had a really large the board and they had a really large the board and they had a really large board and they're offering me a single board and they're offering me a single board and they're offering me a single board seat and it just wasn't board seat and it just wasn't board seat and it just wasn't attractive. attractive. attractive. And then And then And then you know, COVID things got a lot worse. you know, COVID things got a lot worse. you know, COVID things got a lot worse. They were deemed a non-essential store. They were deemed a non-essential store. They were deemed a non-essential store. Basically like kind of on the verge of Basically like kind of on the verge of Basically like kind of on the verge of bankruptcy. The stock traded down bankruptcy. The stock traded down bankruptcy. The stock traded down significantly. significantly. significantly. And then I continued accumulating. And then I continued accumulating. And then I continued accumulating. I ended up going above 5%. At that point I ended up going above 5%. At that point I ended up going above 5%. At that point I needed to decide, am I going to file a I needed to decide, am I going to file a I needed to decide, am I going to file a G or D? A 13G is basically if you want G or D? A 13G is basically if you want G or D? A 13G is basically if you want to be passive, which means you're not to be passive, which means you're not to be passive, which means you're not going to engage with the management team going to engage with the management team going to engage with the management team at all and a D at all and a D at all and a D is where you are going to engage with is where you are going to engage with is where you are going to engage with them. So that was an easy decision once them. So that was an easy decision once them. So that was an easy decision once I crossed over 5% and I remember I crossed over 5% and I remember I crossed over 5% and I remember actually getting a call from the CEO of actually getting a call from the CEO of actually getting a call from the CEO of GameStop at the time and he's like GameStop at the time and he's like GameStop at the time and he's like yeah, we were discussing me going above yeah, we were discussing me going above yeah, we were discussing me going above 5% and and filing the required SEC forms 5% and and filing the required SEC forms 5% and and filing the required SEC forms and he's like, "Did you file a D or G?" and he's like, "Did you file a D or G?" and he's like, "Did you file a D or G?" And I'm like, "A D." And a D obviously And I'm like, "A D." And a D obviously And I'm like, "A D." And a D obviously is is is you know, it's intended that you're you know, it's intended that you're you know, it's intended that you're going to be activist even though it going to be activist even though it going to be activist even though it doesn't necessarily mean you need to be doesn't necessarily mean you need to be doesn't necessarily mean you need to be hostile. It just means you're going to hostile. It just means you're going to hostile. It just means you're going to engage with the management team. engage with the management team. engage with the management team. So um So um So um Anyway, basically that's uh that was Anyway, basically that's uh that was Anyway, basically that's uh that was what happened. what happened. what happened. >> But going back to GameStop, how did you >> But going back to GameStop, how did you >> But going back to GameStop, how did you first identify GameStop cuz the first identify GameStop cuz the first identify GameStop cuz the the kind of the kind of the kind of storyline is, "Hey, Wall Street Bets put storyline is, "Hey, Wall Street Bets put storyline is, "Hey, Wall Street Bets put something on the internet and everyone something on the internet and everyone something on the internet and everyone starts paying attention to it and starts paying attention to it and starts paying attention to it and becomes a meme stock." becomes a meme stock." becomes a meme stock." Was there fundamental unrealized value Was there fundamental unrealized value Was there fundamental unrealized value you saw because you seem to be you saw because you seem to be you saw because you seem to be a real kind of unrealized value investor a real kind of unrealized value investor a real kind of unrealized value investor is how I would kind of describe. Tell me is how I would kind of describe. Tell me is how I would kind of describe. Tell me if you disagree. if you disagree. if you disagree. That there's real value in an That there's real value in an That there's real value in an organization that's not being realized, organization that's not being realized, organization that's not being realized, its potential. its potential. its potential. What did you see in GameStop? How did What did you see in GameStop? How did What did you see in GameStop? How did you first identify it and get involved? you first identify it and get involved? you first identify it and get involved? And And And start accumulating. start accumulating. start accumulating. >> I found it fascinating that >> I found it fascinating that >> I found it fascinating that everybody was like everybody was like everybody was like for whatever reason and still to this for whatever reason and still to this for whatever reason and still to this day everybody hates like the day everybody hates like the day everybody hates like the the mainstream media the mainstream media the mainstream media the the the the general consensus has been that the general consensus has been that the general consensus has been that GameStop is going to be is go was going GameStop is going to be is go was going GameStop is going to be is go was going out of business like a long time ago, out of business like a long time ago, out of business like a long time ago, right? Like 15 years ago. This thing was right? Like 15 years ago. This thing was right? Like 15 years ago. This thing was basically shorted to oblivion. basically shorted to oblivion. basically shorted to oblivion. Uh and everyone was betting against it Uh and everyone was betting against it Uh and everyone was betting against it and everyone's basically just hated it. and everyone's basically just hated it. and everyone's basically just hated it. It's one of those things where when you It's one of those things where when you It's one of those things where when you even say GameStop, everyone's like, "Uh even say GameStop, everyone's like, "Uh even say GameStop, everyone's like, "Uh like really? You're an investor in like really? You're an investor in like really? You're an investor in GameStop?" GameStop?" GameStop?" So, that's always for as long as I So, that's always for as long as I So, that's always for as long as I remember, that's basically been the remember, that's basically been the remember, that's basically been the reputation. It's like the underdog. reputation. It's like the underdog. reputation. It's like the underdog. Everyone loves to take the other side of Everyone loves to take the other side of Everyone loves to take the other side of the trade or bet against it. And so, I the trade or bet against it. And so, I the trade or bet against it. And so, I like that. Like I like the idea of going like that. Like I like the idea of going like that. Like I like the idea of going into a situation where you're basically into a situation where you're basically into a situation where you're basically running into running into running into you're running into a burning house. And you're running into a burning house. And you're running into a burning house. And I originally did it as an investor cuz I originally did it as an investor cuz I originally did it as an investor cuz typically that's where you see typically that's where you see typically that's where you see opportunities is when there's a lot of opportunities is when there's a lot of opportunities is when there's a lot of pessimism and fear. pessimism and fear. pessimism and fear. And then, you know, I ended up basically And then, you know, I ended up basically And then, you know, I ended up basically not necessarily intentionally uh joining the board and then ultimately uh joining the board and then ultimately being the CEO, but that wasn't the being the CEO, but that wasn't the being the CEO, but that wasn't the original plan. The original plan was original plan. The original plan was original plan. The original plan was basically to be a passive investor and basically to be a passive investor and basically to be a passive investor and then I basically ended up just it's like then I basically ended up just it's like then I basically ended up just it's like there was no one else to do the job, so there was no one else to do the job, so there was no one else to do the job, so someone needs to do it and here we are someone needs to do it and here we are someone needs to do it and here we are today. today. today. >> Was there a thesis on value realization >> Was there a thesis on value realization >> Was there a thesis on value realization or was it just about the market had the or was it just about the market had the or was it just about the market had the value wrong? Did you think at the time value wrong? Did you think at the time value wrong? Did you think at the time there was operational changes that could there was operational changes that could there was operational changes that could drive more value? drive more value? drive more value? Or was it just like, "Hey, everyone's Or was it just like, "Hey, everyone's Or was it just like, "Hey, everyone's got this shorter Everyone's got this to got this shorter Everyone's got this to got this shorter Everyone's got this to the wrong side."? the wrong side."? the wrong side."? >> The original thesis was that there's an >> The original thesis was that there's an >> The original thesis was that there's an upcoming console cycle and that they're upcoming console cycle and that they're upcoming console cycle and that they're probably going to survive until the probably going to survive until the probably going to survive until the upcoming console cycle and the new upcoming console cycle and the new upcoming console cycle and the new PlayStation and Microsoft Xbox comes out PlayStation and Microsoft Xbox comes out PlayStation and Microsoft Xbox comes out and it was a very cyclical business and and it was a very cyclical business and and it was a very cyclical business and GameStop typically does very well in the GameStop typically does very well in the GameStop typically does very well in the beginning of the console cycle beginning of the console cycle beginning of the console cycle when the market is very, very tight and when the market is very, very tight and when the market is very, very tight and people are basically people are basically people are basically running the game GameStop to buy running the game GameStop to buy running the game GameStop to buy hardware and software. And so that was hardware and software. And so that was hardware and software. And so that was That was the original thesis. And then That was the original thesis. And then That was the original thesis. And then as I got pulled in, obviously the as I got pulled in, obviously the as I got pulled in, obviously the business is completely different and the business is completely different and the business is completely different and the thesis has changed. Uh but that's where thesis has changed. Uh but that's where thesis has changed. Uh but that's where I started as a as a passive investor. I started as a as a passive investor. I started as a as a passive investor. >> So then they ask you to join the board, >> So then they ask you to join the board, >> So then they ask you to join the board, but but but you make the point, "Hey, if I'm going you make the point, "Hey, if I'm going you make the point, "Hey, if I'm going to be involved, I need to have more to be involved, I need to have more to be involved, I need to have more board seats." Is that kind of how the board seats." Is that kind of how the board seats." Is that kind of how the evolution evolution evolution >> Yeah, they thought I was basically just >> Yeah, they thought I was basically just >> Yeah, they thought I was basically just going to join the board and be a patsy. going to join the board and be a patsy. going to join the board and be a patsy. >> Right. >> Right. >> Right. And then you said you probably picked And then you said you probably picked And then you said you probably picked the wrong guy. Uh I think that that was the wrong guy. Uh I think that that was the wrong guy. Uh I think that that was going to be the case. going to be the case. going to be the case. So then you went public with your views. So then you went public with your views. So then you went public with your views. Is that Is that right? And you kind of Is that Is that right? And you kind of Is that Is that right? And you kind of So I think it was 2021, like early 2021, So I think it was 2021, like early 2021, So I think it was 2021, like early 2021, you joined the board you joined the board you joined the board with two other executives from Chewy, with two other executives from Chewy, with two other executives from Chewy, two friends of yours or two two two friends of yours or two two two friends of yours or two two colleagues of yours. Is that Is that colleagues of yours. Is that Is that colleagues of yours. Is that Is that right? right? right? >> Exactly. >> Exactly. >> Exactly. >> And then the stock took off and all of >> And then the stock took off and all of >> And then the stock took off and all of the hedge funds that were short had to the hedge funds that were short had to the hedge funds that were short had to cover and the stock price just ripped. cover and the stock price just ripped. cover and the stock price just ripped. >> Exactly. >> Exactly. >> Exactly. >> This is the whole story. So, then in >> This is the whole story. So, then in >> This is the whole story. So, then in 2021, the company raises 2021, the company raises 2021, the company raises billion seven, billion seven, billion seven, wipes out all the debt, wipes out all the debt, wipes out all the debt, and what was the plan at that point in and what was the plan at that point in and what was the plan at that point in the business cycle? Was there an the business cycle? Was there an the business cycle? Was there an investment operating plan that you were investment operating plan that you were investment operating plan that you were trying to get the the team to execute trying to get the the team to execute trying to get the the team to execute against? against? against? >> The original plan I I learned a lot at GameStop. I basically learned a lot at GameStop. I basically learned a lot at GameStop. I basically took I went in and I had this took I went in and I had this took I went in and I had this bias from Chewy, which is basically like bias from Chewy, which is basically like bias from Chewy, which is basically like everything that I learned at Chewy I was everything that I learned at Chewy I was everything that I learned at Chewy I was going to apply to GameStop. going to apply to GameStop. going to apply to GameStop. And And And it took me about it took me about it took me about I don't know, maybe I don't know, maybe I don't know, maybe just over a year to realize that was just over a year to realize that was just over a year to realize that was really really stupid. But I ended up really really stupid. But I ended up really really stupid. But I ended up hiring a bunch of e-commerce people from hiring a bunch of e-commerce people from hiring a bunch of e-commerce people from Chewy and Amazon, and I wasn't the CEO. Chewy and Amazon, and I wasn't the CEO. Chewy and Amazon, and I wasn't the CEO. I hired a CEO, so I hired a CEO, so I hired a CEO, so you know, I I didn't have day-to-day you know, I I didn't have day-to-day you know, I I didn't have day-to-day visibility on what was going on. But the visibility on what was going on. But the visibility on what was going on. But the strategy was to make GameStop more like strategy was to make GameStop more like strategy was to make GameStop more like Chewy. Chewy. Chewy. And that was the wrong strategy. And And that was the wrong strategy. And And that was the wrong strategy. And once I became the CEO, once I became the CEO, once I became the CEO, I quickly adjusted because I mean I just I quickly adjusted because I mean I just I quickly adjusted because I mean I just frankly I looked at the financials and frankly I looked at the financials and frankly I looked at the financials and saw it didn't make any sense. saw it didn't make any sense. saw it didn't make any sense. And then it was you know, went into And then it was you know, went into And then it was you know, went into maniacal cost-cutting mode, efficiency, maniacal cost-cutting mode, efficiency, maniacal cost-cutting mode, efficiency, basically focusing on what GameStop is basically focusing on what GameStop is basically focusing on what GameStop is really good at, which is the pre-owned really good at, which is the pre-owned really good at, which is the pre-owned side of things. side of things. side of things. Um and Um and Um and focused on running the retail business focused on running the retail business focused on running the retail business very very well. very very well. very very well. And then ultimately that led us to the And then ultimately that led us to the And then ultimately that led us to the category, the category of collectibles, category, the category of collectibles, category, the category of collectibles, which yeah, today the business is a which yeah, today the business is a which yeah, today the business is a leader in the collectibles category and leader in the collectibles category and leader in the collectibles category and uh software makes up a very small uh software makes up a very small uh software makes up a very small percentage of the business, but there percentage of the business, but there percentage of the business, but there were a lot of learnings on the way and were a lot of learnings on the way and were a lot of learnings on the way and you know, you look at basically Chewy you know, you look at basically Chewy you know, you look at basically Chewy and GameStop, you say, "Well, they're and GameStop, you say, "Well, they're and GameStop, you say, "Well, they're both retailers. You take the same both retailers. You take the same both retailers. You take the same playbook." But, that's not That was not playbook." But, that's not That was not playbook." But, that's not That was not the case. Uh totally different animal. the case. Uh totally different animal. the case. Uh totally different animal. And you know, one is you've got repeat And you know, one is you've got repeat And you know, one is you've got repeat purchases and you've got these really purchases and you've got these really purchases and you've got these really sticky cohorts and you know, we can sticky cohorts and you know, we can sticky cohorts and you know, we can never overbuy inventory for instance at never overbuy inventory for instance at never overbuy inventory for instance at Chewy because Chewy because Chewy because you know, we would end up ultimately you know, we would end up ultimately you know, we would end up ultimately selling it. The revenues were growing selling it. The revenues were growing selling it. The revenues were growing and we turned the inventory very and we turned the inventory very and we turned the inventory very quickly, whereas quickly, whereas quickly, whereas we ended up buying all kinds of we ended up buying all kinds of we ended up buying all kinds of inventory at GameStop and ended up inventory at GameStop and ended up inventory at GameStop and ended up having a bunch of TVs and uh having a bunch of TVs and uh having a bunch of TVs and uh inventory that ends up getting stuck in inventory that ends up getting stuck in inventory that ends up getting stuck in the stores. And if you don't sell it, the stores. And if you don't sell it, the stores. And if you don't sell it, you end up basically taking down, you you end up basically taking down, you you end up basically taking down, you know, losing a lot of money and marking know, losing a lot of money and marking know, losing a lot of money and marking it down. So, a lot of learnings along it down. So, a lot of learnings along it down. So, a lot of learnings along the way for me to understand physical the way for me to understand physical the way for me to understand physical retail, which when I joined the board, I retail, which when I joined the board, I retail, which when I joined the board, I had When I became CEO, I had zero had When I became CEO, I had zero had When I became CEO, I had zero physical retail experience. So. physical retail experience. So. physical retail experience. So. >> Did you think a lot about here are the >> Did you think a lot about here are the >> Did you think a lot about here are the different categories we could leverage different categories we could leverage different categories we could leverage this GameStop network, the stores, the this GameStop network, the stores, the this GameStop network, the stores, the consumer consumer consumer into besides collectibles? How did you into besides collectibles? How did you into besides collectibles? How did you kind of pick the expansion into kind of pick the expansion into kind of pick the expansion into collectibles versus collectibles versus collectibles versus any other sort of used category you any other sort of used category you any other sort of used category you might be able to kind of move into? might be able to kind of move into? might be able to kind of move into? >> We were already in the category. We >> We were already in the category. We >> We were already in the category. We weren't deep in the category and we did weren't deep in the category and we did weren't deep in the category and we did try a few different other things within try a few different other things within try a few different other things within consumer electronics that just consumer electronics that just consumer electronics that just really didn't end up taking off like really didn't end up taking off like really didn't end up taking off like collectibles did. And um collectibles did. And um collectibles did. And um you know, if you look at you know, if you look at you know, if you look at at TCG in particular, but now we're at TCG in particular, but now we're at TCG in particular, but now we're growing uh growing uh growing uh in sports as well has been very very in sports as well has been very very in sports as well has been very very very popular. So, we tried a few very popular. So, we tried a few very popular. So, we tried a few different things and different things and different things and the the trade-in model especially, you the the trade-in model especially, you the the trade-in model especially, you know, worked really well where like know, worked really well where like know, worked really well where like today you could basically bring in a Not today you could basically bring in a Not today you could basically bring in a Not basically, you can bring in a basically, you can bring in a basically, you can bring in a graded PSA card eight and above and we graded PSA card eight and above and we graded PSA card eight and above and we will give you cash on the spot. We buy will give you cash on the spot. We buy will give you cash on the spot. We buy back the card and then we either sell it back the card and then we either sell it back the card and then we either sell it in the store or we bring it back to our in the store or we bring it back to our in the store or we bring it back to our warehouses and we sell it online. So, warehouses and we sell it online. So, warehouses and we sell it online. So, that was very similar to the trade-in that was very similar to the trade-in that was very similar to the trade-in model that we had on both hardware and model that we had on both hardware and model that we had on both hardware and software and it was very extendable to software and it was very extendable to software and it was very extendable to the trading cards category as well. the trading cards category as well. the trading cards category as well. >> As you made this change, did you have to >> As you made this change, did you have to >> As you made this change, did you have to change the team a lot? Management team? change the team a lot? Management team? change the team a lot? Management team? I mean, what was the turnover like after I mean, what was the turnover like after I mean, what was the turnover like after you became CEO at the leadership level you became CEO at the leadership level you became CEO at the leadership level and then below the leadership level? and then below the leadership level? and then below the leadership level? >> It was identifying >> It was identifying >> It was identifying the talent at the company and basically the talent at the company and basically the talent at the company and basically having them working directly with them. having them working directly with them. having them working directly with them. Like the the people who know GameStop Like the the people who know GameStop Like the the people who know GameStop the best have been the best have been the best have been the people that have been there for a the people that have been there for a the people that have been there for a long time and me working closely with long time and me working closely with long time and me working closely with them them them um ended up working really well. um ended up working really well. um ended up working really well. >> You brought others obviously as well. >> You brought others obviously as well. >> You brought others obviously as well. To compliment them. To compliment them. To compliment them. >> Yeah, some some, but I mean, generally >> Yeah, some some, but I mean, generally >> Yeah, some some, but I mean, generally it working with uh the people that have it working with uh the people that have it working with uh the people that have been there that know the business really been there that know the business really been there that know the business really well. well. well. >> Yeah. Some >> Yeah. Some >> Yeah. Some folks who have managed multiple folks who have managed multiple folks who have managed multiple businesses or been CEO and applied businesses or been CEO and applied businesses or been CEO and applied their skills to different business their skills to different business their skills to different business lines, lines, lines, you know, I interviewed this guy Charles you know, I interviewed this guy Charles you know, I interviewed this guy Charles Koch uh a few weeks ago from Koch Koch uh a few weeks ago from Koch Koch uh a few weeks ago from Koch Industries. He's got a whole set of Industries. He's got a whole set of Industries. He's got a whole set of principles that he tries to apply to principles that he tries to apply to principles that he tries to apply to running a business. running a business. running a business. And those principles he's used to build And those principles he's used to build And those principles he's used to build and acquire and operate multiple and acquire and operate multiple and acquire and operate multiple different kinds of businesses and he different kinds of businesses and he different kinds of businesses and he transforms the business by applying his transforms the business by applying his transforms the business by applying his principles to how he runs them. principles to how he runs them. principles to how he runs them. Do you have a similar sort of framework Do you have a similar sort of framework Do you have a similar sort of framework or model or machine that you use for or model or machine that you use for or model or machine that you use for running the business, assessing what's running the business, assessing what's running the business, assessing what's working and what's not working working and what's not working working and what's not working that you then bring to bear on that you then bring to bear on that you then bring to bear on GameStop, on Chewy, and maybe next on GameStop, on Chewy, and maybe next on GameStop, on Chewy, and maybe next on eBay that you've used repeatedly that eBay that you've used repeatedly that eBay that you've used repeatedly that works well for you or is everything kind works well for you or is everything kind works well for you or is everything kind of truly of truly of truly zen mind, beginner's mind, first zen mind, beginner's mind, first zen mind, beginner's mind, first principles approach to thinking about principles approach to thinking about principles approach to thinking about the business? the business? the business? >> I'm sure I do, >> I'm sure I do, >> I'm sure I do, but but but I'm not good at articulating it. So, I'm not good at articulating it. So, I'm not good at articulating it. So, I don't know if I'm the right person to I don't know if I'm the right person to I don't know if I'm the right person to be able to say what's going through my be able to say what's going through my be able to say what's going through my brain. brain. brain. Sometimes like Sometimes like Sometimes like whatever I'm feeling, I can't even whatever I'm feeling, I can't even whatever I'm feeling, I can't even necessarily describe it and if I necessarily describe it and if I necessarily describe it and if I describe it, it ends up being wrong. So, describe it, it ends up being wrong. So, describe it, it ends up being wrong. So, someone else could probably do a better someone else could probably do a better someone else could probably do a better job answering that question than me. job answering that question than me. job answering that question than me. >> What do you think someone else that's >> What do you think someone else that's >> What do you think someone else that's worked for you repeatedly would say it's worked for you repeatedly would say it's worked for you repeatedly would say it's like to work with you? like to work with you? like to work with you? >> You'd have to You'd have to ask them. >> You'd have to You'd have to ask them. >> You'd have to You'd have to ask them. >> Okay. >> Okay. >> Okay. So, let's go through the So, let's go through the So, let's go through the >> things. Hopefully not good things. >> things. Hopefully not good things. >> things. Hopefully not good things. >> Yeah, the pressure's on. >> As the global economy becomes more >> As the global economy becomes more connected, trust becomes the most connected, trust becomes the most connected, trust becomes the most valuable asset in the system. Nasdaq valuable asset in the system. Nasdaq valuable asset in the system. Nasdaq analyzes 1.8 billion transactions every analyzes 1.8 billion transactions every analyzes 1.8 billion transactions every week and when a fraud pattern surfaces, week and when a fraud pattern surfaces, week and when a fraud pattern surfaces, it institution, AI strengthens detection it institution, AI strengthens detection it institution, AI strengthens detection across the entire network within hours. across the entire network within hours. across the entire network within hours. That is what it looks like when trust is That is what it looks like when trust is That is what it looks like when trust is built into the infrastructure itself. built into the infrastructure itself. built into the infrastructure itself. Built for the economy that is arriving, Built for the economy that is arriving, Built for the economy that is arriving, find out more at nasdaq.com. find out more at nasdaq.com. find out more at nasdaq.com. >> [music] >> [music] >> [music] >> The numbers speak for themselves in >> The numbers speak for themselves in >> The numbers speak for themselves in terms of what you've delivered at terms of what you've delivered at terms of what you've delivered at GameStop. I think collectibles is now GameStop. I think collectibles is now GameStop. I think collectibles is now 42% of revenue. 42% of revenue. 42% of revenue. 350 million dollars in Q1. Revenue was 350 million dollars in Q1. Revenue was 350 million dollars in Q1. Revenue was 835 million. You grew at 14% 835 million. You grew at 14% 835 million. You grew at 14% year-over-year. You cut SG&A from 228 to year-over-year. You cut SG&A from 228 to year-over-year. You cut SG&A from 228 to 202. 202. 202. You have 9.7 billion in cash. You have 9.7 billion in cash. You have 9.7 billion in cash. 333 million in free cash flow. 333 million in free cash flow. 333 million in free cash flow. And the board's just authorized a share And the board's just authorized a share And the board's just authorized a share repurchase. So, it's pretty tremendous repurchase. So, it's pretty tremendous repurchase. So, it's pretty tremendous how you've operated how you've operated how you've operated this business. So, so help me understand this business. So, so help me understand this business. So, so help me understand a little bit as you're building a little bit as you're building a little bit as you're building GameStop, operating it, and executing, GameStop, operating it, and executing, GameStop, operating it, and executing, what makes you lift your head up and what makes you lift your head up and what makes you lift your head up and say, "Hey, we should be doing say, "Hey, we should be doing say, "Hey, we should be doing acquisitions and looking at other acquisitions and looking at other acquisitions and looking at other things" things" things" instead of just building everything instead of just building everything instead of just building everything organically in-house? organically in-house? organically in-house? >> If you look at the size of the business >> If you look at the size of the business >> If you look at the size of the business that I can build that I can build that I can build organically with GameStop, organically with GameStop, organically with GameStop, it's nice. It's okay, but it's nice. It's okay, but it's nice. It's okay, but I like to do big things. And, you know, I like to do big things. And, you know, I like to do big things. And, you know, Chewy is a good example. Chewy is a good example. Chewy is a good example. It could have been a $500 million It could have been a $500 million It could have been a $500 million business. It could have been a $100 business. It could have been a $100 business. It could have been a $100 million business. It could have been million business. It could have been million business. It could have been profitable if we would have spent a lot profitable if we would have spent a lot profitable if we would have spent a lot less money on marketing, but less money on marketing, but less money on marketing, but life is too short to do it small. So, the If you look at how complementary the If you look at how complementary and and and as we've gone into the collectible as we've gone into the collectible as we've gone into the collectible space, space, space, I've come to appreciate eBay I've come to appreciate eBay I've come to appreciate eBay uh uh uh differently. And if you look at how complementary And if you look at how complementary these two businesses are from a a lot of these two businesses are from a a lot of these two businesses are from a a lot of different dimensions. different dimensions. different dimensions. The secondary market side of the The secondary market side of the The secondary market side of the business, the collectible side of the business, the collectible side of the business, the collectible side of the business, the ability to provide business, the ability to provide business, the ability to provide liquidity to consumers, liquidity to consumers, liquidity to consumers, what we're doing in stores, eBay is what we're doing in stores, eBay is what we're doing in stores, eBay is doing online. doing online. doing online. Um Um Um Authentication of second-hand items. There are There are There are so many There are so many There are so many aspects of the business that are similar aspects of the business that are similar aspects of the business that are similar except that eBay is global and has except that eBay is global and has except that eBay is global and has significant scale. significant scale. significant scale. Um Um Um and frankly it's a business that and frankly it's a business that and frankly it's a business that I understand a lot better than physical I understand a lot better than physical I understand a lot better than physical retail retail retail cuz I know a thing or two about cuz I know a thing or two about cuz I know a thing or two about e-commerce and it's an area where e-commerce and it's an area where e-commerce and it's an area where frankly I'm much more comfortable frankly I'm much more comfortable frankly I'm much more comfortable operating. And so when you look at how operating. And so when you look at how operating. And so when you look at how much the businesses together makes sense much the businesses together makes sense much the businesses together makes sense and then you look at and then you look at and then you look at the fact that it's within my circle of the fact that it's within my circle of the fact that it's within my circle of competence. It's competence. It's competence. It's uh I look at Chewy as like I look at Chewy as like Chewy in hindsight, we had a lot of Chewy in hindsight, we had a lot of Chewy in hindsight, we had a lot of competition in the pet space that were competition in the pet space that were competition in the pet space that were really well funded and they were decent really well funded and they were decent really well funded and they were decent operators and they didn't end up making operators and they didn't end up making operators and they didn't end up making it because it because it because you know, it was a low margin business you know, it was a low margin business you know, it was a low margin business going head-to-head against Amazon and going head-to-head against Amazon and going head-to-head against Amazon and it's similar to like it's similar to like it's similar to like the the the the airline industry where people don't the airline industry where people don't the airline industry where people don't really care about the actual airline really care about the actual airline really care about the actual airline they're flying. They're just basically they're flying. They're just basically they're flying. They're just basically shopping by price. So shopping by price. So shopping by price. So >> Yeah. >> Yeah. >> Yeah. >> That That was selling pet food online. >> That That was selling pet food online. >> That That was selling pet food online. Not a great idea and you know, GameStop Not a great idea and you know, GameStop Not a great idea and you know, GameStop I don't think was such a good idea I don't think was such a good idea I don't think was such a good idea either. This was This is actually a either. This was This is actually a either. This was This is actually a really good idea whether it ends up really good idea whether it ends up really good idea whether it ends up working out or not, but this is actually working out or not, but this is actually working out or not, but this is actually a really good idea. a really good idea. a really good idea. We'll see what happens. So We'll see what happens. So We'll see what happens. So >> Was there a moment you remember >> Was there a moment you remember >> Was there a moment you remember when you said when you said when you said we should make a play we should make a play we should make a play for eBay. for eBay. for eBay. Do you remember that moment when you Do you remember that moment when you Do you remember that moment when you were kind of looking at the business or were kind of looking at the business or were kind of looking at the business or thinking about the business thinking about the business thinking about the business when this idea kind of sprung forth? when this idea kind of sprung forth? when this idea kind of sprung forth? >> Yes, I do. >> Yes, I do. >> Yes, I do. >> What was it? >> What was it? >> What was it? >> I >> I >> I >> [laughter] >> [laughter] >> [laughter] >> I was on the toilet. >> I was on the toilet. >> I was on the toilet. >> Okay. >> Okay. >> Okay. And you were just thinking about it? And you were just thinking about it? And you were just thinking about it? >> Pretty much. >> Pretty much. >> Pretty much. >> [laughter] >> [laughter] >> [laughter] >> I'm assuming you've been studying the >> I'm assuming you've been studying the >> I'm assuming you've been studying the business cuz you're in the collectibles business cuz you're in the collectibles business cuz you're in the collectibles business and learning a little bit about business and learning a little bit about business and learning a little bit about it and it and it and had this idea sitting there. had this idea sitting there. had this idea sitting there. >> Yeah, I mean I followed eBay for a very >> Yeah, I mean I followed eBay for a very >> Yeah, I mean I followed eBay for a very long time and I came to appreciate their long time and I came to appreciate their long time and I came to appreciate their um um um their their their their experience their uh their their their experience their uh their their their experience their uh their their moat in the collectible space. moat in the collectible space. moat in the collectible space. But it's not just collectibles too. I But it's not just collectibles too. I But it's not just collectibles too. I mean it's the refurbished tech piece of mean it's the refurbished tech piece of mean it's the refurbished tech piece of the business where the business where the business where >> Yeah. >> Yeah. >> Yeah. >> GameStop >> GameStop >> GameStop it's a big portion of our business and it's a big portion of our business and it's a big portion of our business and it's a big portion of of eBay's business it's a big portion of of eBay's business it's a big portion of of eBay's business too. too. too. The second-hand business as well. So The second-hand business as well. So The second-hand business as well. So there were other things that there were other things that there were other things that I thought about where I could personally I thought about where I could personally I thought about where I could personally add value and might make sense for add value and might make sense for add value and might make sense for GameStop. But this one made sense for me GameStop. But this one made sense for me GameStop. But this one made sense for me personally and it makes sense for personally and it makes sense for personally and it makes sense for GameStop. So GameStop. So GameStop. So >> Mhm. >> Mhm. >> Mhm. So if you So if you So if you have studied eBay have studied eBay have studied eBay what do you think what do you think what do you think the team did right in the early days? the team did right in the early days? the team did right in the early days? Was it simply the network effect and the Was it simply the network effect and the Was it simply the network effect and the business took off? business took off? business took off? And once they had the network it was And once they had the network it was And once they had the network it was hard to break the moat. Was there hard to break the moat. Was there hard to break the moat. Was there anything about the formula or the anything about the formula or the anything about the formula or the consumer model or experience cuz you consumer model or experience cuz you consumer model or experience cuz you you've said publicly hey eBay looks a you've said publicly hey eBay looks a you've said publicly hey eBay looks a lot like it did in the early days. Was lot like it did in the early days. Was lot like it did in the early days. Was there something about early management, there something about early management, there something about early management, early design principles, early early design principles, early early design principles, early engineering, anything that happened in engineering, anything that happened in engineering, anything that happened in the early stages of eBay that made it the early stages of eBay that made it the early stages of eBay that made it what it is today? what it is today? what it is today? >> I you know, I look at basically the >> I you know, I look at basically the >> I you know, I look at basically the marketplace model where they had marketplace model where they had marketplace model where they had first-mover advantage. So their ability first-mover advantage. So their ability first-mover advantage. So their ability to have first-mover advantage and really to have first-mover advantage and really to have first-mover advantage and really be the like de facto marketplace online be the like de facto marketplace online be the like de facto marketplace online including against Amazon was was including against Amazon was was including against Amazon was was significant. Um significant. Um significant. Um So, that was really helpful. So, that was really helpful. So, that was really helpful. I wouldn't say that I wouldn't say that I wouldn't say that if you look in general at the growth in if you look in general at the growth in if you look in general at the growth in e-commerce e-commerce e-commerce and you look at Amazon as an example and you look at Amazon as an example and you look at Amazon as an example that basically took the marketplace that basically took the marketplace that basically took the marketplace model, but also took taking possession model, but also took taking possession model, but also took taking possession of first-party inventory along with of first-party inventory along with of first-party inventory along with growing their marketplace and like they growing their marketplace and like they growing their marketplace and like they ultimately scaled it and they ultimately scaled it and they ultimately scaled it and they essentially did what Walmart was doing, essentially did what Walmart was doing, essentially did what Walmart was doing, but they did it online at scale. I mean but they did it online at scale. I mean but they did it online at scale. I mean obviously obviously obviously you can't compare the two. you can't compare the two. you can't compare the two. But, they they their focus on building a But, they they their focus on building a But, they they their focus on building a marketplace marketplace marketplace gave them a moat and staying power, but gave them a moat and staying power, but gave them a moat and staying power, but I wouldn't say that their execution I wouldn't say that their execution I wouldn't say that their execution was great. In the early days, it was was great. In the early days, it was was great. In the early days, it was great when it was founder operated, but great when it was founder operated, but great when it was founder operated, but since then if you look at how much since then if you look at how much since then if you look at how much e-commerce has grown and how much market e-commerce has grown and how much market e-commerce has grown and how much market share they've given up to the likes of share they've given up to the likes of share they've given up to the likes of basically everyone, new competitors in basically everyone, new competitors in basically everyone, new competitors in the space that are very category the space that are very category the space that are very category focused. focused. focused. Live shopping competitors picked off Live shopping competitors picked off Live shopping competitors picked off significant share from them. significant share from them. significant share from them. Shopify, social commerce, Amazon, eBay's Shopify, social commerce, Amazon, eBay's Shopify, social commerce, Amazon, eBay's been able to maintain a revenue base and been able to maintain a revenue base and been able to maintain a revenue base and and and generate earnings, and and generate earnings, and and generate earnings, but they haven't grown along with the but they haven't grown along with the but they haven't grown along with the rest of e-commerce. So, and and if you rest of e-commerce. So, and and if you rest of e-commerce. So, and and if you look at how they've done most recently, look at how they've done most recently, look at how they've done most recently, I mean they've basically the business I mean they've basically the business I mean they've basically the business has stagnated up until the last few has stagnated up until the last few has stagnated up until the last few quarters and their operating expenses quarters and their operating expenses quarters and their operating expenses are up significantly. So, are up significantly. So, are up significantly. So, um um um It's not to say, you know, they've they It's not to say, you know, they've they It's not to say, you know, they've they they they are the de facto marketplace they they are the de facto marketplace they they are the de facto marketplace online especially in certain categories, online especially in certain categories, online especially in certain categories, but that business should be but that business should be but that business should be significantly larger. significantly larger. significantly larger. >> Do you think they missed >> Do you think they missed >> Do you think they missed the boat and if so, why on stores? You the boat and if so, why on stores? You the boat and if so, why on stores? You know, Amazon stores, Shopify obviously know, Amazon stores, Shopify obviously know, Amazon stores, Shopify obviously have become categories onto themselves. have become categories onto themselves. have become categories onto themselves. All of those power sellers probably All of those power sellers probably All of those power sellers probably transitioned over to having stores at transitioned over to having stores at transitioned over to having stores at some point. some point. some point. What did eBay miss? What did eBay miss? What did eBay miss? Was it purely execution and is there Was it purely execution and is there Was it purely execution and is there still an opportunity to win back that still an opportunity to win back that still an opportunity to win back that market? market? market? >> eBay could I mean and and I'm not >> eBay could I mean and and I'm not >> eBay could I mean and and I'm not advocating I mean this is not something advocating I mean this is not something advocating I mean this is not something I would not go head-to-head against I would not go head-to-head against I would not go head-to-head against Amazon today, but I mean eBay could have Amazon today, but I mean eBay could have Amazon today, but I mean eBay could have been Amazon. So, when you look at what been Amazon. So, when you look at what been Amazon. So, when you look at what Amazon has built, I mean everything from Amazon has built, I mean everything from Amazon has built, I mean everything from uh taking inventory and their principles uh taking inventory and their principles uh taking inventory and their principles of of of they provide a great customer they provide a great customer they provide a great customer experience. And so, I mean that's why we experience. And so, I mean that's why we experience. And so, I mean that's why we all love shopping on Amazon. And as a all love shopping on Amazon. And as a all love shopping on Amazon. And as a seller, Seller Central is a very seller, Seller Central is a very seller, Seller Central is a very powerful platform and sellers generally powerful platform and sellers generally powerful platform and sellers generally like it, too. I don't know if they like it, too. I don't know if they like it, too. I don't know if they necessarily like the margins, but they necessarily like the margins, but they necessarily like the margins, but they can move a lot of inventory on Amazon. can move a lot of inventory on Amazon. can move a lot of inventory on Amazon. So, So, So, eBay eBay eBay by doing nothing has basically carved by doing nothing has basically carved by doing nothing has basically carved out a niche in certain categories where out a niche in certain categories where out a niche in certain categories where Amazon Amazon Amazon isn't strong because they're strong in isn't strong because they're strong in isn't strong because they're strong in other categories and you know, you're other categories and you know, you're other categories and you know, you're buying a a phone charger or new buying a a phone charger or new buying a a phone charger or new products. It's not necessarily the place products. It's not necessarily the place products. It's not necessarily the place where you want to search for like a uh where you want to search for like a uh where you want to search for like a uh a unique baseball card or a a a unique baseball card or a a a unique baseball card or a a hard-to-find pen or a used auto part. hard-to-find pen or a used auto part. hard-to-find pen or a used auto part. I don't know if it was necessarily I don't know if it was necessarily I don't know if it was necessarily through strategy or just because they through strategy or just because they through strategy or just because they ended up ended up ended up they ended up basically like defaulting they ended up basically like defaulting they ended up basically like defaulting into those categories cuz into those categories cuz into those categories cuz their largest competitor was focused on their largest competitor was focused on their largest competitor was focused on other things. other things. other things. >> Do you think Amazon's over-earning right >> Do you think Amazon's over-earning right >> Do you think Amazon's over-earning right now? Cuz I I think the point you made now? Cuz I I think the point you made now? Cuz I I think the point you made resonates with me. I've been involved in resonates with me. I've been involved in resonates with me. I've been involved in a number of businesses I've been on the a number of businesses I've been on the a number of businesses I've been on the board of and I see the margin that board of and I see the margin that board of and I see the margin that Amazon takes for seller from sellers. Amazon takes for seller from sellers. Amazon takes for seller from sellers. And everyone's frustrated about it. It And everyone's frustrated about it. It And everyone's frustrated about it. It almost feels to me like everyone's almost feels to me like everyone's almost feels to me like everyone's hungry for an alternative. But the hungry for an alternative. But the hungry for an alternative. But the reason you stay on Amazon is the reach reason you stay on Amazon is the reach reason you stay on Amazon is the reach and the audience that you get with and the audience that you get with and the audience that you get with Amazon. So there's not a lot of other Amazon. So there's not a lot of other Amazon. So there's not a lot of other places that offer a competitive places that offer a competitive places that offer a competitive alternative to Amazon to those sellers. alternative to Amazon to those sellers. alternative to Amazon to those sellers. eBay's got a pretty big audience. I mean eBay's got a pretty big audience. I mean eBay's got a pretty big audience. I mean do you think that do you think that do you think that Amazon's over earning in that sense and Amazon's over earning in that sense and Amazon's over earning in that sense and is there an opportunity for eBay to step is there an opportunity for eBay to step is there an opportunity for eBay to step up and up and up and compete in that sense? compete in that sense? compete in that sense? >> They charge a lot of money to their >> They charge a lot of money to their >> They charge a lot of money to their sellers. I I agree with you. And um sellers. I I agree with you. And um sellers. I I agree with you. And um sellers like it because they move a lot sellers like it because they move a lot sellers like it because they move a lot of inventory but they don't like the of inventory but they don't like the of inventory but they don't like the margins. margins. margins. >> The problem would obviously be >> The problem would obviously be >> The problem would obviously be inventory, right? I mean if eBay were to inventory, right? I mean if eBay were to inventory, right? I mean if eBay were to go in that direction and you were go in that direction and you were go in that direction and you were running eBay, what do you think you'd do running eBay, what do you think you'd do running eBay, what do you think you'd do about inventory and logistics? about inventory and logistics? about inventory and logistics? >> I would not be interested in taking in >> I would not be interested in taking in >> I would not be interested in taking in first hand inventory. first hand inventory. first hand inventory. >> Right. >> Right. >> Right. >> I like >> I like >> I like the marketplace the marketplace the marketplace model. model. model. And and the categories where eBay's And and the categories where eBay's And and the categories where eBay's doing well are categories where GameStop doing well are categories where GameStop doing well are categories where GameStop is doing specially well also. But um is doing specially well also. But um is doing specially well also. But um going head-to-head against Amazon going head-to-head against Amazon going head-to-head against Amazon is um it's uh it's it's it's not the most it's uh it's it's it's not the most attractive business. attractive business. attractive business. >> eBay is notorious for having bought and >> eBay is notorious for having bought and >> eBay is notorious for having bought and then sold a number of big businesses. then sold a number of big businesses. then sold a number of big businesses. They bought PayPal and then later spun They bought PayPal and then later spun They bought PayPal and then later spun it out and divested and they bought it out and divested and they bought it out and divested and they bought Skype for 2.6 billion in 2005 Skype for 2.6 billion in 2005 Skype for 2.6 billion in 2005 and then sold 70% of it for 2 billion in and then sold 70% of it for 2 billion in and then sold 70% of it for 2 billion in 2009 and then they got lucky with 2009 and then they got lucky with 2009 and then they got lucky with Microsoft over paying in 2011 and they Microsoft over paying in 2011 and they Microsoft over paying in 2011 and they made another 2 billion on it. So they made another 2 billion on it. So they made another 2 billion on it. So they they netted a good profit on on the they netted a good profit on on the they netted a good profit on on the Skype sale. Skype sale. Skype sale. So when you think about the audience So when you think about the audience So when you think about the audience that eBay has the the the user base that eBay has the the the user base that eBay has the the the user base there's a lot of ancillary businesses there's a lot of ancillary businesses there's a lot of ancillary businesses you could get into. When you look at you could get into. When you look at you could get into. When you look at PayPal, when you look at Skype, PayPal, when you look at Skype, PayPal, when you look at Skype, were those strategic errors or were they were those strategic errors or were they were those strategic errors or were they tactical errors, meaning they were good tactical errors, meaning they were good tactical errors, meaning they were good strategic moves but they were mismanaged strategic moves but they were mismanaged strategic moves but they were mismanaged and not well integrated, not well run and not well integrated, not well run and not well integrated, not well run after the acquisition? What do you think after the acquisition? What do you think after the acquisition? What do you think happened there? happened there? happened there? >> Well, if you look today at eBay, I mean, >> Well, if you look today at eBay, I mean, >> Well, if you look today at eBay, I mean, I like I like I like focus. So, them focusing on core eBay focus. So, them focusing on core eBay focus. So, them focusing on core eBay makes sense. I mean, my strategy at makes sense. I mean, my strategy at makes sense. I mean, my strategy at Chewy wasn't creating all these other Chewy wasn't creating all these other Chewy wasn't creating all these other sub brands for different geographies. It sub brands for different geographies. It sub brands for different geographies. It was always focusing on on Chewy. So, was always focusing on on Chewy. So, was always focusing on on Chewy. So, um um um the focus is helpful. I'd say in eBay's the focus is helpful. I'd say in eBay's the focus is helpful. I'd say in eBay's case hasn't resulted in significant case hasn't resulted in significant case hasn't resulted in significant GMV growth if at all or earnings growth, GMV growth if at all or earnings growth, GMV growth if at all or earnings growth, but I do like being focused. Now, I but I do like being focused. Now, I but I do like being focused. Now, I mean, they've recently made acquisitions mean, they've recently made acquisitions mean, they've recently made acquisitions which which which uh don't make sense, but generally uh don't make sense, but generally uh don't make sense, but generally speaking, like speaking, like speaking, like I like focusing on a singular brand and I like focusing on a singular brand and I like focusing on a singular brand and especially with a business that's especially with a business that's especially with a business that's global, there's a a lot of upside and, global, there's a a lot of upside and, global, there's a a lot of upside and, you know, eBay plays in a ton of you know, eBay plays in a ton of you know, eBay plays in a ton of categories already. So, it's hard to do categories already. So, it's hard to do categories already. So, it's hard to do multiple things exceptionally well. multiple things exceptionally well. multiple things exceptionally well. >> Yeah, the other example, obviously, >> Yeah, the other example, obviously, >> Yeah, the other example, obviously, StubHub which they bought and then sold StubHub which they bought and then sold StubHub which they bought and then sold to the founder Eric at Viagogo to the founder Eric at Viagogo to the founder Eric at Viagogo for 4 billion years later, but also for 4 billion years later, but also for 4 billion years later, but also didn't didn't really transition well. didn't didn't really transition well. didn't didn't really transition well. Does that mean that eBay can't really do Does that mean that eBay can't really do Does that mean that eBay can't really do well in other marketplaces or do you well in other marketplaces or do you well in other marketplaces or do you think it's about building the product think it's about building the product think it's about building the product organically in a better way to expand organically in a better way to expand organically in a better way to expand into other marketplace verticals? into other marketplace verticals? into other marketplace verticals? >> Yeah, building it >> Yeah, building it >> Yeah, building it organically through eBay and through organically through eBay and through organically through eBay and through focus. Um is is where I where I where I believe is is where I where I where I believe makes the most sense. makes the most sense. makes the most sense. >> What's happened with the business in the >> What's happened with the business in the >> What's happened with the business in the post-Donahoe era? He left, I think, what post-Donahoe era? He left, I think, what post-Donahoe era? He left, I think, what did he leave, uh, a couple years ago? did he leave, uh, a couple years ago? did he leave, uh, a couple years ago? 2015. 2015. 2015. And it's been about 11 years. I mean, if And it's been about 11 years. I mean, if And it's been about 11 years. I mean, if someone were to ask you, "Hey, give me someone were to ask you, "Hey, give me someone were to ask you, "Hey, give me your summary of what's happened to eBay your summary of what's happened to eBay your summary of what's happened to eBay in the last 11 years." How would you in the last 11 years." How would you in the last 11 years." How would you kind of talk through kind of talk through kind of talk through what's happened in the business? what's happened in the business? what's happened in the business? >> I mean, if you just look at how they've >> I mean, if you just look at how they've >> I mean, if you just look at how they've done in the past since COVID, done in the past since COVID, done in the past since COVID, every important metric is down. every important metric is down. every important metric is down. Uh, GMV's down, active users is down by Uh, GMV's down, active users is down by Uh, GMV's down, active users is down by 30 million, operating earnings is down. 30 million, operating earnings is down. 30 million, operating earnings is down. Revenue now is, you know, basically Revenue now is, you know, basically Revenue now is, you know, basically essentially break even. It's up a few essentially break even. It's up a few essentially break even. It's up a few points and operating expenses is up points and operating expenses is up points and operating expenses is up significantly. Their operating expenses significantly. Their operating expenses significantly. Their operating expenses now are, for a business that has no now are, for a business that has no now are, for a business that has no inventory, their operating, their inventory, their operating, their inventory, their operating, their revenues are, their operating expenses revenues are, their operating expenses revenues are, their operating expenses are over half of their revenues. So, are over half of their revenues. So, are over half of their revenues. So, that's a business that that's a business that that's a business that they're not growing. Everybody else in they're not growing. Everybody else in they're not growing. Everybody else in e-commerce is growing. e-commerce is growing. e-commerce is growing. And they're making less money and And they're making less money and And they're making less money and they're spending a lot more. And their they're spending a lot more. And their they're spending a lot more. And their sellers, frankly, aren't happy. Like, sellers, frankly, aren't happy. Like, sellers, frankly, aren't happy. Like, it's you talk to sellers and in order it's you talk to sellers and in order it's you talk to sellers and in order for them to do business on eBay, they for them to do business on eBay, they for them to do business on eBay, they have to use all kinds of third-party have to use all kinds of third-party have to use all kinds of third-party tools outside of eBay because tools outside of eBay because tools outside of eBay because eBay's not even providing those tools. I eBay's not even providing those tools. I eBay's not even providing those tools. I mean, mean, mean, Amazon Seller Central Amazon Seller Central Amazon Seller Central is is, uh, is is, uh, is is, uh, is like soup to nuts. You could pretty is like soup to nuts. You could pretty is like soup to nuts. You could pretty much do everything in Seller Central. much do everything in Seller Central. much do everything in Seller Central. Whereas with eBay, Whereas with eBay, Whereas with eBay, uh, it's a pain. And and uh, it's a pain. And and uh, it's a pain. And and they alienate their sellers. I mean, they alienate their sellers. I mean, they alienate their sellers. I mean, they had concierge programs for their they had concierge programs for their they had concierge programs for their top sellers and now it's like they take top sellers and now it's like they take top sellers and now it's like they take their sellers for granted and they're their sellers for granted and they're their sellers for granted and they're taking advantage of them. So, the taking advantage of them. So, the taking advantage of them. So, the sellers sellers sellers in a marketplace model like eBay, the in a marketplace model like eBay, the in a marketplace model like eBay, the sellers are the customer. You make your sellers are the customer. You make your sellers are the customer. You make your sellers happy, you give them the tools, sellers happy, you give them the tools, sellers happy, you give them the tools, they bring more they bring more they bring more inventory online and you end up inventory online and you end up inventory online and you end up ultimately doing more sales and ultimately doing more sales and ultimately doing more sales and they're not working with their sellers they're not working with their sellers they're not working with their sellers to make them happy. So, to make them happy. So, to make them happy. So, it's not that complicated. You talk to it's not that complicated. You talk to it's not that complicated. You talk to the sellers on the phone, you talk to the sellers on the phone, you talk to the sellers on the phone, you talk to the top sellers, you ask them what are the top sellers, you ask them what are the top sellers, you ask them what are the pain points, and you get the the pain points, and you get the the pain points, and you get the engineering team on the phone with the engineering team on the phone with the engineering team on the phone with the sellers, and you start basically banging sellers, and you start basically banging sellers, and you start basically banging them out. But, them out. But, them out. But, you know, I guess uh existing management team doesn't roll up existing management team doesn't roll up their like they're not going to roll up their like they're not going to roll up their like they're not going to roll up their sleeves. They're going to go to their sleeves. They're going to go to their sleeves. They're going to go to outside consulting firms to tell them outside consulting firms to tell them outside consulting firms to tell them how to run their business. how to run their business. how to run their business. >> Is that what's happened? What you state >> Is that what's happened? What you state >> Is that what's happened? What you state seems obvious. So, do you think it's seems obvious. So, do you think it's seems obvious. So, do you think it's that management simply been that management simply been that management simply been complacent and collecting a paycheck and complacent and collecting a paycheck and complacent and collecting a paycheck and no one's acting like an owner? no one's acting like an owner? no one's acting like an owner? No one actually knows how to execute, or No one actually knows how to execute, or No one actually knows how to execute, or do you think they fundamentally would do you think they fundamentally would do you think they fundamentally would disagree with that strategy, those disagree with that strategy, those disagree with that strategy, those points that you're making? points that you're making? points that you're making? >> Well, I mean, they're never going to >> Well, I mean, they're never going to >> Well, I mean, they're never going to admit it, but I would admit it, but I would admit it, but I would I would bet everything that they're I would bet everything that they're I would bet everything that they're working with multiple outside working with multiple outside working with multiple outside consultants, and for different for a lot consultants, and for different for a lot consultants, and for different for a lot of different reasons, of different reasons, of different reasons, and they're not making their sellers and they're not making their sellers and they're not making their sellers happy. So, their sellers are on the happy. So, their sellers are on the happy. So, their sellers are on the platform because they do a lot of platform because they do a lot of platform because they do a lot of business on the platform, and they want business on the platform, and they want business on the platform, and they want to move product, but to move product, but to move product, but they don't feel like eBay they don't feel like eBay they don't feel like eBay is wants to make them succeed and is is wants to make them succeed and is is wants to make them succeed and is working with them to do more business working with them to do more business working with them to do more business together. So, that's what happens when together. So, that's what happens when together. So, that's what happens when you go from a business that founder you go from a business that founder you go from a business that founder operator run to business with a operator run to business with a operator run to business with a professional management team is, professional management team is, professional management team is, you know, you lose the you know, you lose the you know, you lose the the one-on-one and the the one-on-one and the the one-on-one and the just the rolling up your sleeves, really just the rolling up your sleeves, really just the rolling up your sleeves, really getting into solving the root cause of getting into solving the root cause of getting into solving the root cause of problems. problems. problems. >> Do you believe in building >> Do you believe in building >> Do you believe in building long-range operating plans, meaning long-range operating plans, meaning long-range operating plans, meaning would you articulate a strategic vision would you articulate a strategic vision would you articulate a strategic vision for eBay? for eBay? for eBay? And then write out what you're going to And then write out what you're going to And then write out what you're going to do over the next three, four, five years do over the next three, four, five years do over the next three, four, five years so that the shareholders that are so that the shareholders that are so that the shareholders that are considering your acquisition offer considering your acquisition offer considering your acquisition offer can see both your vision and your plan can see both your vision and your plan can see both your vision and your plan for execution on that vision over the for execution on that vision over the for execution on that vision over the next several years. Or are you much more next several years. Or are you much more next several years. Or are you much more of a responsive manager where you're of a responsive manager where you're of a responsive manager where you're going to go in and diagnose and be much going to go in and diagnose and be much going to go in and diagnose and be much more of a tactician in iterating almost more of a tactician in iterating almost more of a tactician in iterating almost in an agile way the business in an agile way the business in an agile way the business to success? How do you kind of think to success? How do you kind of think to success? How do you kind of think about presenting how you're going to be about presenting how you're going to be about presenting how you're going to be more successful in operating this more successful in operating this more successful in operating this business than existing management? business than existing management? business than existing management? >> So, there are three areas. Number >> So, there are three areas. Number >> So, there are three areas. Number one is on immediately improving earnings one is on immediately improving earnings one is on immediately improving earnings through cutting costs and through cutting costs and through cutting costs and pulling $2 billion of costs out of the pulling $2 billion of costs out of the pulling $2 billion of costs out of the business. And on the operating base of, business. And on the operating base of, business. And on the operating base of, you know, close to 5 and 1/2 billion of you know, close to 5 and 1/2 billion of you know, close to 5 and 1/2 billion of expenses, expenses, expenses, um and 2.4 billion spent on sales and um and 2.4 billion spent on sales and um and 2.4 billion spent on sales and marketing for essentially no user marketing for essentially no user marketing for essentially no user growth, growth, growth, um there's a lot of money to pull out um there's a lot of money to pull out um there's a lot of money to pull out there. So, you have the immediate there. So, you have the immediate there. So, you have the immediate increase in earnings through increase in earnings through increase in earnings through cost-cutting. That's basically one. And cost-cutting. That's basically one. And cost-cutting. That's basically one. And then there's two growth vectors that then there's two growth vectors that then there's two growth vectors that um I'm very much interested in. um I'm very much interested in. um I'm very much interested in. Number one is live commerce. And there's Number one is live commerce. And there's Number one is live commerce. And there's a large competitor that is completely a large competitor that is completely a large competitor that is completely crushing it. And eBay has the users. crushing it. And eBay has the users. crushing it. And eBay has the users. eBay has the brands. They have a eBay has the brands. They have a eBay has the brands. They have a platform, but the platform sucks for a platform, but the platform sucks for a platform, but the platform sucks for a lot of different reasons. lot of different reasons. lot of different reasons. Uh and they don't have the content Uh and they don't have the content Uh and they don't have the content creators on the platform, and nobody creators on the platform, and nobody creators on the platform, and nobody even really knows eBay Live exists. even really knows eBay Live exists. even really knows eBay Live exists. There's like an application process. I There's like an application process. I There's like an application process. I talked to sellers, and they're telling talked to sellers, and they're telling talked to sellers, and they're telling me like they have applied to be uh, to me like they have applied to be uh, to me like they have applied to be uh, to be a seller, and they need are waiting be a seller, and they need are waiting be a seller, and they need are waiting to get approved. It's like they're to get approved. It's like they're to get approved. It's like they're basically stopping themselves from being basically stopping themselves from being basically stopping themselves from being successful and getting content creators successful and getting content creators successful and getting content creators onto the platform. onto the platform. onto the platform. Uh, and then the entire back end of eBay Uh, and then the entire back end of eBay Uh, and then the entire back end of eBay Live also sucks. So, live commerce, the Live also sucks. So, live commerce, the Live also sucks. So, live commerce, the TAM is like 400 billion. It's growing TAM is like 400 billion. It's growing TAM is like 400 billion. It's growing very quickly in the US. It's very very quickly in the US. It's very very quickly in the US. It's very popular in Asia. And eBay Live should be popular in Asia. And eBay Live should be popular in Asia. And eBay Live should be significantly larger. They should be the significantly larger. They should be the significantly larger. They should be the category leader in the space. And they category leader in the space. And they category leader in the space. And they have like at max a few hundred people, have like at max a few hundred people, have like at max a few hundred people, you know, in you know, in you know, in um, um, um, you know, basically watching watching you know, basically watching watching you know, basically watching watching their uh, watching watching their sales. their uh, watching watching their sales. their uh, watching watching their sales. So, So, So, that's a huge huge growth opportunity that's a huge huge growth opportunity that's a huge huge growth opportunity for them to start doing really well in for them to start doing really well in for them to start doing really well in live commerce. Uh, and the benefit also live commerce. Uh, and the benefit also live commerce. Uh, and the benefit also we have with the stores beyond basically we have with the stores beyond basically we have with the stores beyond basically fixing the platform, the front end and fixing the platform, the front end and fixing the platform, the front end and the back end, the back end, the back end, uh, using the stores, they're 1,600 uh, using the stores, they're 1,600 uh, using the stores, they're 1,600 essentially nodes that can be used as essentially nodes that can be used as essentially nodes that can be used as studios for creators. They could be used studios for creators. They could be used studios for creators. They could be used as fulfillment and logistics, and as fulfillment and logistics, and as fulfillment and logistics, and ultimately allowing sellers and the ultimately allowing sellers and the ultimately allowing sellers and the content creators do what they do best, content creators do what they do best, content creators do what they do best, which is create content, and we can help which is create content, and we can help which is create content, and we can help them on photography, we can help them on them on photography, we can help them on them on photography, we can help them on fulfillment, we can help them on fulfillment, we can help them on fulfillment, we can help them on logistics. logistics. logistics. Um, and we can also do the Um, and we can also do the Um, and we can also do the authentication. And that extends to the authentication. And that extends to the authentication. And that extends to the marketplace model as well. marketplace model as well. marketplace model as well. So, So, So, uh, uh, uh, I would focus a lot on on growing the I would focus a lot on on growing the I would focus a lot on on growing the live commerce side of things beyond the live commerce side of things beyond the live commerce side of things beyond the cost cutting. And then the third thing cost cutting. And then the third thing cost cutting. And then the third thing is, and this is something that I have is, and this is something that I have is, and this is something that I have not not not spoken about before publicly, spoken about before publicly, spoken about before publicly, but eBay today but eBay today but eBay today is the leader in is the leader in is the leader in physical items, physical collectibles as physical items, physical collectibles as physical items, physical collectibles as an example. And so, I would extend an example. And so, I would extend an example. And so, I would extend the that into digital collectibles. And the that into digital collectibles. And the that into digital collectibles. And essentially, if you look at all of these essentially, if you look at all of these essentially, if you look at all of these in-game items, AAA titles, that people in-game items, AAA titles, that people in-game items, AAA titles, that people are accumulating, skins, weapons, are accumulating, skins, weapons, are accumulating, skins, weapons, all of these things, taking eBay and all of these things, taking eBay and all of these things, taking eBay and building a marketplace where you can building a marketplace where you can building a marketplace where you can provide the liquidity for in-game provide the liquidity for in-game provide the liquidity for in-game digital items. Essentially, it's what digital items. Essentially, it's what digital items. Essentially, it's what NFTs NFTs NFTs could have people thought they were, but could have people thought they were, but could have people thought they were, but ultimately, they had no real utility. ultimately, they had no real utility. ultimately, they had no real utility. In-game items actually have real In-game items actually have real In-game items actually have real utility. And if you look at all of these utility. And if you look at all of these utility. And if you look at all of these collectibles, frankly, they're an ego collectibles, frankly, they're an ego collectibles, frankly, they're an ego play. You own art, like, what is that? play. You own art, like, what is that? play. You own art, like, what is that? The end of the day, The end of the day, The end of the day, it's an ego play. it's an ego play. it's an ego play. Um if you look at trading cards, I mean, Um if you look at trading cards, I mean, Um if you look at trading cards, I mean, it's a piece of cardboard in a piece of it's a piece of cardboard in a piece of it's a piece of cardboard in a piece of plastic. plastic. plastic. And they're very, very, very popular, And they're very, very, very popular, And they're very, very, very popular, but there's no real utility to them but there's no real utility to them but there's no real utility to them other than being able to tell people other than being able to tell people other than being able to tell people you've got these really a really unique you've got these really a really unique you've got these really a really unique trading card. trading card. trading card. But if you look at in-game digital But if you look at in-game digital But if you look at in-game digital items, there's no marketplace that is items, there's no marketplace that is items, there's no marketplace that is providing liquidity for them. And so, I providing liquidity for them. And so, I providing liquidity for them. And so, I would use eBay would use eBay would use eBay to to to uh to provide liquidity for in-game uh to provide liquidity for in-game uh to provide liquidity for in-game digital items. And I believe that digital items. And I believe that digital items. And I believe that addressable market is significantly addressable market is significantly addressable market is significantly larger than larger than larger than uh I could be much larger than uh I could be much larger than uh I could be much larger than eBay's marketplace on physical items, eBay's marketplace on physical items, eBay's marketplace on physical items, and no one's doing it. And And this and no one's doing it. And And this and no one's doing it. And And this should already exist. And it's kind of should already exist. And it's kind of should already exist. And it's kind of it like it's crazy that it doesn't it like it's crazy that it doesn't it like it's crazy that it doesn't exist. exist. exist. >> The eBay board has rejected your offer. >> The eBay board has rejected your offer. >> The eBay board has rejected your offer. Is it that they're looking at Ryan Cohen Is it that they're looking at Ryan Cohen Is it that they're looking at Ryan Cohen saying, "Hey, you're a guy that ran saying, "Hey, you're a guy that ran saying, "Hey, you're a guy that ran Chewy for a few years and sold it, and Chewy for a few years and sold it, and Chewy for a few years and sold it, and you've been running GameStop. You've you've been running GameStop. You've you've been running GameStop. You've never really operated a business of the never really operated a business of the never really operated a business of the scale. scale. scale. We're not going to hand over our shares We're not going to hand over our shares We're not going to hand over our shares for your shares, and put you in charge for your shares, and put you in charge for your shares, and put you in charge of this overall enterprise. You don't of this overall enterprise. You don't of this overall enterprise. You don't have the experience, you don't have the have the experience, you don't have the have the experience, you don't have the skills, you don't have the competency. skills, you don't have the competency. skills, you don't have the competency. What's their rationale for rejecting What's their rationale for rejecting What's their rationale for rejecting your bid and what's the feedback, the your bid and what's the feedback, the your bid and what's the feedback, the frank feedback you've heard either frank feedback you've heard either frank feedback you've heard either behind closed doors or through, behind closed doors or through, behind closed doors or through, you know, third parties about what's you know, third parties about what's you know, third parties about what's going on here? going on here? going on here? >> Well, they put out a rejection letter >> Well, they put out a rejection letter >> Well, they put out a rejection letter which said that our offer was which said that our offer was which said that our offer was incredible. incredible. incredible. And there was a lot of uncertainty and And there was a lot of uncertainty and And there was a lot of uncertainty and you know, frankly, and by the way, I you know, frankly, and by the way, I you know, frankly, and by the way, I mean, this is expected. They don't want mean, this is expected. They don't want mean, this is expected. They don't want to hand over the reins, they're making a to hand over the reins, they're making a to hand over the reins, they're making a lot of money and so I completely lot of money and so I completely lot of money and so I completely understand why they're taking the understand why they're taking the understand why they're taking the position that they're they're taking. position that they're they're taking. position that they're they're taking. But, you know, they they spelled it out But, you know, they they spelled it out But, you know, they they spelled it out in the rejection letter and number one in the rejection letter and number one in the rejection letter and number one was uh, you know, that like the the was uh, you know, that like the the was uh, you know, that like the the financing uncertainty, which frankly, if financing uncertainty, which frankly, if financing uncertainty, which frankly, if we can't get the financing, it means we can't get the financing, it means we can't get the financing, it means that eBay can't get the financing cuz that eBay can't get the financing cuz that eBay can't get the financing cuz we're getting the financing off of we're getting the financing off of we're getting the financing off of eBay's balance sheet. But, there's been eBay's balance sheet. But, there's been eBay's balance sheet. But, there's been very, you know, there has not been very very, you know, there has not been very very, you know, there has not been very much engagement from the management and much engagement from the management and much engagement from the management and board level. Frankly, there's there's board level. Frankly, there's there's board level. Frankly, there's there's been really no engagement. I mean, been really no engagement. I mean, been really no engagement. I mean, they're they're playing games. They they're they're playing games. They they're they're playing games. They pointed us to their high-priced advisers pointed us to their high-priced advisers pointed us to their high-priced advisers and then when we reach out to schedule a and then when we reach out to schedule a and then when we reach out to schedule a meeting, they they don't schedule the meeting, they they don't schedule the meeting, they they don't schedule the meeting. So, meeting. So, meeting. So, >> So, >> So, >> So, when you first started having when you first started having when you first started having [clears throat] [clears throat] [clears throat] this idea sitting on the john and you're this idea sitting on the john and you're this idea sitting on the john and you're like, I'm going to move forward with like, I'm going to move forward with like, I'm going to move forward with this thing. I'm assuming at some point this thing. I'm assuming at some point this thing. I'm assuming at some point you called bankers and talked about you called bankers and talked about you called bankers and talked about structure around this structure around this structure around this to figure out how do we put this bid to figure out how do we put this bid to figure out how do we put this bid together? together? together? Where do you go down the path where you Where do you go down the path where you Where do you go down the path where you said, let's do said, let's do said, let's do half cash half cash half cash and then convince them to take our stock and then convince them to take our stock and then convince them to take our stock and basically roll their stock into our and basically roll their stock into our and basically roll their stock into our stock and let us run the business versus stock and let us run the business versus stock and let us run the business versus raise the capital to do an all cash raise the capital to do an all cash raise the capital to do an all cash offer for the company? offer for the company? offer for the company? Is it impossible for you guys to Is it impossible for you guys to Is it impossible for you guys to convince convince convince shareholders, investors, capital shareholders, investors, capital shareholders, investors, capital providers, large institutions, banks, providers, large institutions, banks, providers, large institutions, banks, lenders, and so on to put together a lenders, and so on to put together a lenders, and so on to put together a syndicate of $56 billion of cash so you syndicate of $56 billion of cash so you syndicate of $56 billion of cash so you could make this an all cash offer could make this an all cash offer could make this an all cash offer which would make it a lot harder for which would make it a lot harder for which would make it a lot harder for them to simply reject so easily? Maybe them to simply reject so easily? Maybe them to simply reject so easily? Maybe you can walk us through the banker you can walk us through the banker you can walk us through the banker conversations and the process you've conversations and the process you've conversations and the process you've gone through in thinking about structure gone through in thinking about structure gone through in thinking about structure here. here. here. >> Ultimately, the decision is who do you >> Ultimately, the decision is who do you >> Ultimately, the decision is who do you want to run the business? want to run the business? want to run the business? And who do you think is more competent And who do you think is more competent And who do you think is more competent to run the business and who's going to to run the business and who's going to to run the business and who's going to maximize shareholder value because maximize shareholder value because maximize shareholder value because by giving by giving by giving existing shareholders GameStop shares existing shareholders GameStop shares existing shareholders GameStop shares shares shares shares uh uh uh GameStop, the combined company the at least the at least in the very near to medium future, the in the very near to medium future, the in the very near to medium future, the earnings are coming from eBay. So, earnings are coming from eBay. So, earnings are coming from eBay. So, they're going to continue owning eBay. they're going to continue owning eBay. they're going to continue owning eBay. We're offering them 50% cash, 50% stock We're offering them 50% cash, 50% stock We're offering them 50% cash, 50% stock at a premium to where we bought it. at a premium to where we bought it. at a premium to where we bought it. And essentially, they get to continue And essentially, they get to continue And essentially, they get to continue owning eBay except you've got someone owning eBay except you've got someone owning eBay except you've got someone that is highly incentivized to maximize that is highly incentivized to maximize that is highly incentivized to maximize shareholder value knows a thing or two shareholder value knows a thing or two shareholder value knows a thing or two about e-commerce and running the about e-commerce and running the about e-commerce and running the business business business efficiently. efficiently. efficiently. >> But why not go all cash, Ryan? Like why >> But why not go all cash, Ryan? Like why >> But why not go all cash, Ryan? Like why not raise the capital? not raise the capital? not raise the capital? If you can raise half the cash If you can raise half the cash If you can raise half the cash to do the bid, why not raise all the to do the bid, why not raise all the to do the bid, why not raise all the cash, sell your shares, sell sell cash, sell your shares, sell sell cash, sell your shares, sell sell GameStop shares to investors to raise GameStop shares to investors to raise GameStop shares to investors to raise the cash that are aligned with you the cash that are aligned with you the cash that are aligned with you rather than the investors that own those rather than the investors that own those rather than the investors that own those eBay shares, and then go make them an eBay shares, and then go make them an eBay shares, and then go make them an all cash offer? all cash offer? all cash offer? >> I mean >> I mean >> I mean that is not what we've presented today that is not what we've presented today that is not what we've presented today and that's a lot of cash to and that's a lot of cash to and that's a lot of cash to to come up with. So, um to come up with. So, um to come up with. So, um you know, uh you know, uh you know, uh we don't have uh $60 billion of cash we don't have uh $60 billion of cash we don't have uh $60 billion of cash just lying around. just lying around. just lying around. >> Right. >> Right. >> Right. Well, tell me about the the the owners. Well, tell me about the the the owners. Well, tell me about the the the owners. Have you spoken to any of the Have you spoken to any of the Have you spoken to any of the shareholders at eBay? And do you have a shareholders at eBay? And do you have a shareholders at eBay? And do you have a view on how they're thinking about view on how they're thinking about view on how they're thinking about voting their shares? My understanding is voting their shares? My understanding is voting their shares? My understanding is there was recently there was recently there was recently a rejection on the ability to call a a rejection on the ability to call a a rejection on the ability to call a special shareholder meeting. There was a special shareholder meeting. There was a special shareholder meeting. There was a vote that failed to reduce the threshold vote that failed to reduce the threshold vote that failed to reduce the threshold to 10% of shares outstanding. It's to 10% of shares outstanding. It's to 10% of shares outstanding. It's currently at 20%. So, that failure means currently at 20%. So, that failure means currently at 20%. So, that failure means you cannot call a special shareholder you cannot call a special shareholder you cannot call a special shareholder meeting without 20% of the shares meeting without 20% of the shares meeting without 20% of the shares calling for it. calling for it. calling for it. Is that right? Um Is that right? Um Is that right? Um >> Yeah, it was close. It was close, but >> Yeah, it was close. It was close, but >> Yeah, it was close. It was close, but that's right. that's right. that's right. >> And so, if you go through and start >> And so, if you go through and start >> And so, if you go through and start talking to the actual owners of eBay talking to the actual owners of eBay talking to the actual owners of eBay today, cuz it it's a pretty today, cuz it it's a pretty today, cuz it it's a pretty broadly owned, institutionally owned broadly owned, institutionally owned broadly owned, institutionally owned stock. stock. stock. Have you started having those Have you started having those Have you started having those institutional conversations to see where institutional conversations to see where institutional conversations to see where folks are at and how they're feeling folks are at and how they're feeling folks are at and how they're feeling about management and how they're feeling about management and how they're feeling about management and how they're feeling about your strategy and your ability to about your strategy and your ability to about your strategy and your ability to deliver value for them over the next deliver value for them over the next deliver value for them over the next couple of years? couple of years? couple of years? >> Yeah, I mean, I I don't want to um >> Yeah, I mean, I I don't want to um >> Yeah, I mean, I I don't want to um I don't want to get into individual I don't want to get into individual I don't want to get into individual shareholder discussions, but shareholder discussions, but shareholder discussions, but >> Yeah. >> Yeah. >> Yeah. >> the consensus has generally been >> the consensus has generally been >> the consensus has generally been aligned, which is they love the aligned, which is they love the aligned, which is they love the business. business. business. Um and yeah, they they see a lot of Um and yeah, they they see a lot of Um and yeah, they they see a lot of opportunities. opportunities. opportunities. So, we'll see what ends up ultimately So, we'll see what ends up ultimately So, we'll see what ends up ultimately happening, and maybe the composition could shift because, you know, if you could shift because, you know, if you love the business, love the business, love the business, you might not want 50% cash. You might you might not want 50% cash. You might you might not want 50% cash. You might want to stay invested. So, you know, want to stay invested. So, you know, want to stay invested. So, you know, that that's a possibility, too. that that's a possibility, too. that that's a possibility, too. Ultimately, Ultimately, Ultimately, the vote is on who's going to be a the vote is on who's going to be a the vote is on who's going to be a better fiduciary of capital and and who better fiduciary of capital and and who better fiduciary of capital and and who can grow this business, can grow this business, can grow this business, um me or or someone that's basically um me or or someone that's basically um me or or someone that's basically selling stock hand over fist and by the selling stock hand over fist and by the selling stock hand over fist and by the way, has not bought a single share way, has not bought a single share way, has not bought a single share [snorts] of stock in the open market [snorts] of stock in the open market [snorts] of stock in the open market with his own money. with his own money. with his own money. And he's been selling tens of millions And he's been selling tens of millions And he's been selling tens of millions of dollars. And you know, the of dollars. And you know, the of dollars. And you know, the interesting thing in this interesting thing in this interesting thing in this and maybe you can help me understand and maybe you can help me understand and maybe you can help me understand this is that there's no question what this is that there's no question what this is that there's no question what we're doing, what I'm doing is uh it's we're doing, what I'm doing is uh it's we're doing, what I'm doing is uh it's big. You know, it's not every single day big. You know, it's not every single day big. You know, it's not every single day that something like this occurs. But why that something like this occurs. But why that something like this occurs. But why does everybody want us to fail? Why does does everybody want us to fail? Why does does everybody want us to fail? Why does everyone want GameStop to fail? And why everyone want GameStop to fail? And why everyone want GameStop to fail? And why is everyone like the media is an is everyone like the media is an is everyone like the media is an example. Why is it that you've got a example. Why is it that you've got a example. Why is it that you've got a management team with no skin in the management team with no skin in the management team with no skin in the game. They're not builders. They haven't game. They're not builders. They haven't game. They're not builders. They haven't built anything themselves before. built anything themselves before. built anything themselves before. They've basically just been employees at They've basically just been employees at They've basically just been employees at major companies have been overpaid. I major companies have been overpaid. I major companies have been overpaid. I don't think they've ever broken out a don't think they've ever broken out a don't think they've ever broken out a sweat in their entire lives. Why does sweat in their entire lives. Why does sweat in their entire lives. Why does everyone want them to succeed? But when everyone want them to succeed? But when everyone want them to succeed? But when you have someone that and by the way you have someone that and by the way you have someone that and by the way um, this is going to be coming out. It um, this is going to be coming out. It um, this is going to be coming out. It hasn't been filed yet. Maybe by the time hasn't been filed yet. Maybe by the time hasn't been filed yet. Maybe by the time that you know, when this airs it will that you know, when this airs it will that you know, when this airs it will be. But I'm putting 500 million of my be. But I'm putting 500 million of my be. But I'm putting 500 million of my own money into this transaction. I own money into this transaction. I own money into this transaction. I haven't pulled a penny out of GameStop. haven't pulled a penny out of GameStop. haven't pulled a penny out of GameStop. I've invested I've invested I've invested a lot of money into GameStop. I've been a lot of money into GameStop. I've been a lot of money into GameStop. I've been doing it for a long time. doing it for a long time. doing it for a long time. GameStop's a much stronger business GameStop's a much stronger business GameStop's a much stronger business today. Everyone hates GameStop and it today. Everyone hates GameStop and it today. Everyone hates GameStop and it seems like everyone in the media seems like everyone in the media seems like everyone in the media basically wants us to fail and wants basically wants us to fail and wants basically wants us to fail and wants them to succeed. And you've got a board them to succeed. And you've got a board them to succeed. And you've got a board that's making hundreds of thousands of that's making hundreds of thousands of that's making hundreds of thousands of dollars a year. They don't buy stock dollars a year. They don't buy stock dollars a year. They don't buy stock with their own money. with their own money. with their own money. They end up showing up to a handful of They end up showing up to a handful of They end up showing up to a handful of board meetings and they're making a board meetings and they're making a board meetings and they're making a fortune. You've got a management team fortune. You've got a management team fortune. You've got a management team that is grossly overpaid with taking that is grossly overpaid with taking that is grossly overpaid with taking zero risk. And why is everyone basically zero risk. And why is everyone basically zero risk. And why is everyone basically want this entrenched want this entrenched want this entrenched management team and board to stay like management team and board to stay like management team and board to stay like protected and to continue running the protected and to continue running the protected and to continue running the business and doesn't want business and doesn't want business and doesn't want There's nothing more American than There's nothing more American than There's nothing more American than basically risking your own capital. So, basically risking your own capital. So, basically risking your own capital. So, why does everyone want us to fail? Commentators. Commentators. What's your theory? What's your theory? What's your theory? I don't know. Have you sat down with their CEO? Have you sat down with their CEO? I would love to. I would love to. I would love to. He won't take the meeting? I would I He won't take the meeting? I would I He won't take the meeting? I would I will fly to California tomorrow. will fly to California tomorrow. will fly to California tomorrow. No. No. No. >> And >> And >> And I mean, you're the guy that's going to I mean, you're the guy that's going to I mean, you're the guy that's going to fire him. fire him. fire him. But, he's going to get a payday, right? But, he's going to get a payday, right? But, he's going to get a payday, right? >> A big payday. >> A big payday. >> A big payday. >> A big payday. What's his parachute? >> A big payday. What's his parachute? >> A big payday. What's his parachute? >> parachute. >> parachute. >> parachute. >> Do you know what the parachute is for >> Do you know what the parachute is for >> Do you know what the parachute is for him? him? him? >> It's over 100 million bucks. >> It's over 100 million bucks. >> It's over 100 million bucks. >> So, he'll get 100 million to walk away. >> So, he'll get 100 million to walk away. >> So, he'll get 100 million to walk away. >> Yeah. >> Yeah. >> Yeah. >> Have you met with any of the board >> Have you met with any of the board >> Have you met with any of the board members? members? members? >> No. >> No. >> No. >> They won't take the meeting. >> They won't take the meeting. >> They won't take the meeting. Have you reached out? Have you reached out? Have you reached out? >> Yeah. >> Yeah. >> Yeah. >> The great thing about markets, >> The great thing about markets, >> The great thing about markets, they don't care what the media says. On they don't care what the media says. On they don't care what the media says. On the short term, they might. It's a the short term, they might. It's a the short term, they might. It's a voting machine, but on the long term, voting machine, but on the long term, voting machine, but on the long term, it's a weighing machine. it's a weighing machine. it's a weighing machine. And if the performance And if the performance And if the performance continues to be delivered at GameStop, continues to be delivered at GameStop, continues to be delivered at GameStop, people that might want to see the people that might want to see the people that might want to see the company fail are going to lose cuz company fail are going to lose cuz company fail are going to lose cuz you're going to get you're going to get you're going to get the weight, right? That's ultimately the weight, right? That's ultimately the weight, right? That's ultimately what's going to matter more than what's going to matter more than what's going to matter more than anything here. anything here. anything here. But, I I would assume that at this But, I I would assume that at this But, I I would assume that at this point, seeing the results at GameStop, point, seeing the results at GameStop, point, seeing the results at GameStop, folks have to start paying attention folks have to start paying attention folks have to start paying attention that this isn't just a meme stock. I do that this isn't just a meme stock. I do that this isn't just a meme stock. I do think that the media, think that the media, think that the media, in order to give you credibility, in order to give you credibility, in order to give you credibility, and this would be my take on this, and this would be my take on this, and this would be my take on this, they're going to have to acknowledge they're going to have to acknowledge they're going to have to acknowledge that all of their takes on GameStop just that all of their takes on GameStop just that all of their takes on GameStop just being a meme stock being a meme stock being a meme stock were wrong. were wrong. were wrong. And that there is actually a business And that there is actually a business And that there is actually a business here, and that there is value being here, and that there is value being here, and that there is value being created here, and that they missed that, created here, and that they missed that, created here, and that they missed that, and they got the story completely wrong. and they got the story completely wrong. and they got the story completely wrong. And so, to recognize that, and to And so, to recognize that, and to And so, to recognize that, and to recognize your competency as an recognize your competency as an recognize your competency as an executive and as a CEO, and as someone executive and as a CEO, and as someone executive and as a CEO, and as someone that can run eBay better than the that can run eBay better than the that can run eBay better than the installed management makes them wrong installed management makes them wrong installed management makes them wrong in their assessment of how the cards in their assessment of how the cards in their assessment of how the cards were all laid out on the table. were all laid out on the table. were all laid out on the table. That would be my theory about all this That would be my theory about all this That would be my theory about all this because everyone got caught up because everyone got caught up because everyone got caught up in the frenzy of in the frenzy of in the frenzy of the meme stock craze saying, "Hey, this the meme stock craze saying, "Hey, this the meme stock craze saying, "Hey, this is all just is all just is all just fake. It's not real." fake. It's not real." fake. It's not real." And everyone agreed with that. Once And everyone agreed with that. Once And everyone agreed with that. Once everyone agrees with it, no one's everyone agrees with it, no one's everyone agrees with it, no one's allowed to rewrite history. No one can allowed to rewrite history. No one can allowed to rewrite history. No one can ever say that they were wrong about ever say that they were wrong about ever say that they were wrong about COVID. You can't have everyone say that COVID. You can't have everyone say that COVID. You can't have everyone say that they were wrong about GameStop because they were wrong about GameStop because they were wrong about GameStop because it ruins their credibility. To maintain it ruins their credibility. To maintain it ruins their credibility. To maintain their credibility, they have to continue their credibility, they have to continue their credibility, they have to continue to make you seem less credible. That to make you seem less credible. That to make you seem less credible. That would be my take on it. would be my take on it. would be my take on it. >> Yeah. >> Yeah. >> Yeah. Yep. Yep. Yep. >> So, your next steps, you're going to go >> So, your next steps, you're going to go >> So, your next steps, you're going to go hostile? hostile? hostile? You're going to do a tender? I mean, You're going to do a tender? I mean, You're going to do a tender? I mean, how's this going to go? how's this going to go? how's this going to go? >> I'm going to do whatever we need to do, >> I'm going to do whatever we need to do, >> I'm going to do whatever we need to do, whatever I need to do in order to whatever I need to do in order to whatever I need to do in order to succeed. succeed. succeed. >> But, you're committed. Clearly. Clearly. >> yeah. >> yeah. >> yeah. >> If I'm their bankers, I get hired to run >> If I'm their bankers, I get hired to run >> If I'm their bankers, I get hired to run a process and maximize shareholder a process and maximize shareholder a process and maximize shareholder value. Those bankers then try to value. Those bankers then try to value. Those bankers then try to negotiate with you, but the truth is if negotiate with you, but the truth is if negotiate with you, but the truth is if there's no other bidders, there's no other bidders, there's no other bidders, they're just negotiating against they're just negotiating against they're just negotiating against themselves. Is is that fair to say? themselves. Is is that fair to say? themselves. Is is that fair to say? Like, are there other bidders that could Like, are there other bidders that could Like, are there other bidders that could emerge here emerge here emerge here um that could beat this price that um that could beat this price that um that could beat this price that you're offering, that could beat this you're offering, that could beat this you're offering, that could beat this offer that you're putting on the table? offer that you're putting on the table? offer that you're putting on the table? >> Well, >> Well, >> Well, it's a lot of money. It's a big premium. it's a lot of money. It's a big premium. it's a lot of money. It's a big premium. And And And uh beauty is in the eye of the beholder uh beauty is in the eye of the beholder uh beauty is in the eye of the beholder and like it makes sense for me and like it makes sense for me and like it makes sense for me to pay this for the business because of to pay this for the business because of to pay this for the business because of what I could do with the business. what I could do with the business. what I could do with the business. Not just short-term in terms of Not just short-term in terms of Not just short-term in terms of increasing the earnings, but long-term increasing the earnings, but long-term increasing the earnings, but long-term in terms of really taking significant in terms of really taking significant in terms of really taking significant market share in live commerce and digi- market share in live commerce and digi- market share in live commerce and digi- building a digital marketplace for building a digital marketplace for building a digital marketplace for gaming. That's something an existing gaming. That's something an existing gaming. That's something an existing management team would never be able to management team would never be able to management team would never be able to build in their wildest dreams. build in their wildest dreams. build in their wildest dreams. And so, it's worth it for me to do And so, it's worth it for me to do And so, it's worth it for me to do something like that. And then, you know, something like that. And then, you know, something like that. And then, you know, obviously, when it comes to their large obviously, when it comes to their large obviously, when it comes to their large competitors, competitors, competitors, there's antitrust issues in terms of there's antitrust issues in terms of there's antitrust issues in terms of them being able to to do a deal of this them being able to to do a deal of this them being able to to do a deal of this size as well. But, size as well. But, size as well. But, um I don't know why they won't speak to me. I don't know why they won't speak to me. They should cuz I'm not going to stop. They should cuz I'm not going to stop. They should cuz I'm not going to stop. I'm not going to go away. I'm not going to go away. I'm not going to go away. But, I'm sure But, I'm sure But, I'm sure >> another option. Yeah, I mean, people >> another option. Yeah, I mean, people >> another option. Yeah, I mean, people could come along and buy the shares on could come along and buy the shares on could come along and buy the shares on the open market, too, and vote in favor the open market, too, and vote in favor the open market, too, and vote in favor of your offer. So, I mean, this is what of your offer. So, I mean, this is what of your offer. So, I mean, this is what often happens in these sorts of often happens in these sorts of often happens in these sorts of situations historically is situations historically is situations historically is the shareholder base can turn over. the shareholder base can turn over. the shareholder base can turn over. And if people like the premium on the And if people like the premium on the And if people like the premium on the stock today, stock today, stock today, and they don't want to own GameStop and they don't want to own GameStop and they don't want to own GameStop stock tomorrow, there's probably going stock tomorrow, there's probably going stock tomorrow, there's probably going to develop a good market for trading the to develop a good market for trading the to develop a good market for trading the shares if the market starts to believe shares if the market starts to believe shares if the market starts to believe your story, I would imagine, right? And your story, I would imagine, right? And your story, I would imagine, right? And so, that might happen here as well. so, that might happen here as well. so, that might happen here as well. So, look, So, look, So, look, >> There's a lot of different escalation >> There's a lot of different escalation >> There's a lot of different escalation paths that um paths that um paths that um we have in our toolkit. we have in our toolkit. we have in our toolkit. >> And we'll see them. Are you working with >> And we'll see them. Are you working with >> And we'll see them. Are you working with bankers? Are you doing this alone? bankers? Are you doing this alone? bankers? Are you doing this alone? >> Yeah, we're we're working with bankers >> Yeah, we're we're working with bankers >> Yeah, we're we're working with bankers and uh high-priced advisors. and uh high-priced advisors. and uh high-priced advisors. >> [laughter] >> [laughter] >> [laughter] >> Ryan, this has been awesome to get to >> Ryan, this has been awesome to get to >> Ryan, this has been awesome to get to know you and hear about your history and know you and hear about your history and know you and hear about your history and your vision for where you want to take your vision for where you want to take your vision for where you want to take GameStop and eBay. Really, man, the best GameStop and eBay. Really, man, the best GameStop and eBay. Really, man, the best of luck to you in the process, and of luck to you in the process, and of luck to you in the process, and thanks for speaking with us. thanks for speaking with us. thanks for speaking with us. >> I appreciate it. Great speaking to you, >> I appreciate it. Great speaking to you, >> I appreciate it. Great speaking to you, Dave. >> [music] >> [music] >> I'm going >> I'm going >> I'm going all in.