GameStop Corp. disclosed a 9.8% stake in eBay Inc., reigniting its pursuit of the e-commerce platform despite a previous rejection. The investment follows a non-binding proposal submitted on May 3 to acquire all outstanding eBay shares for $125 per share in a cash-and-stock deal, valuing the transaction at approximately $56 billion. eBay's board rejected the offer, describing it as "neither credible nor attractive," but GameStop continues to build its position and reaffirm its intent to acquire the platform "one way or another."

Strategic Accumulation

According to a regulatory filing, GameStop now owns 43.4 million shares of eBay, a sharp increase from the 5% economic stake CEO Ryan Cohen initially disclosed in May. The company acquired more than 3.5 million shares for $381.3 million between June 8 and June 15, followed by roughly 39 million additional shares through put/call pairs on June 17. Cohen believes a combined entity could reach a $1 trillion valuation by leveraging eBay's marketplace infrastructure and GameStop's 1,600 retail nodes for authentication services.

Regulatory and Market Context

The proposed transaction remains non-binding and is subject to negotiation, financing, regulatory approvals, and stockholder votes from both companies. In a regulatory filing last month, GameStop stated its leadership team remains focused on advancing the proposed acquisition and confirmed that additional materials are forthcoming. Cohen has suggested that combining the two businesses would create a stronger competitor to Amazon.com, Inc. and indicated he would lead the merged company.

Market Performance

At the time of publication, GameStop shares are trading 0.05% higher at $21.90 and eBay shares are trading 0.84% higher at $113.00. eBay currently holds a market capitalization of about $50.07 billion, compared to GameStop's roughly $10 billion.

GameStop Corp. stockholders approved all proposals at the 2026 Annual Meeting of Stockholders, including an amendment to the certificate of incorporation to increase the number of authorized shares of Class A common stock. The amendment, which received the affirmative vote of 68.7% of votes cast, provides the company with the capacity to issue common stock for strategic transactions, including its proposed acquisition of eBay Inc. This authorization is critical as GameStop pursues a non-binding proposal delivered on May 3, 2026, to acquire all outstanding eBay common stock at $125 per share in a combination of cash and stock.

The meeting also saw the re-election of all five director nominees, the ratification of the independent registered public accounting firm, and an advisory vote on executive compensation. Final voting results will be filed with the Securities and Exchange Commission on a Form 8-K. The approval comes as GameStop navigates a shifting retail landscape, with Sony Group Corp planning to cease production of physical PlayStation discs by January 2028, pressuring the company to diversify beyond physical media sales.

Acquisition Details and Financial Position

GameStop's proposed acquisition of eBay remains subject to conditions, including the negotiation of a definitive agreement, financing, and regulatory approvals. As of the filing date, GameStop directly beneficially owns 4,343,725 shares of eBay common stock and holds economic exposure to a further 39,046,658 shares through put/call option transactions. These Put/Call Pairs, expiring February 23, 2028, were previously settleable only in cash until the Hart Scott Rodino (HSR) Act Condition was satisfied on June 3, 2026. This satisfaction enabled the option for physical settlement of the underlying shares.

Financial Performance and Outlook

The strategic pivot follows a fiscal 2025 where software sales declined 27.5% year-over-year to $729.3 million, while the collectibles segment surged 47.7% to $1.06 billion. GameStop reported its most profitable quarter in history recently, with net income of $389.6 million on revenue of $835.3 million. The company has projected adjusted EBITDA for the fiscal year ending January 30, 2027 (FY2026) to exceed $600 million, compared to $345.4 million in fiscal 2025.