GameStop Pursues eBay Acquisition Amid Record Profit and Share Increase
GameStop reported a record Q1 2026 net income of $389.6 million, driven by a 14% revenue rise and strong collectibles sales. The company seeks shareholder approval to boost its authorized share count from 1 billion to 2.5 billion to fund its ongoing pursuit of eBay, despite eBay rejecting a $55.5 billion half-stock, half-cash offer as "neither credible nor attractive." GameStop has increased its eBay stake to about 6% and holds over $500 million in Bitcoin. A new $2 billion share buyback was also approved.
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GameStop posts higher first-quarter sales and earnings
GameStop reported a sharp improvement in first-quarter earnings and operating performance for the period ended May 2, 2026. Net sales rose 14% to $835.3 million, driven by growth in its collectibles business. Net income surged to $389.6 million from $44.8 million, boosted by a $268.4 million unrealized gain on derivative assets linked to eBay stock. Operating income turned positive at $143.3 million versus a loss of $10.8 million a year earlier. The US was the dominant contributor with $651.1 million in sales. The company's board approved a new $2 billion share repurchase authorization. The results come after GameStop's unsolicited $55.5 billion takeover bid for eBay was rejected by eBay's board as 'neither credible nor attractive.'
Yahoo FinanceGameStop posts higher first-quarter sales and earnings
GameStop reported a sharp improvement in first-quarter earnings for the period ended May 2, 2026, with net sales rising 14% to $835.3 million, driven by growth in its collectibles business. Net income surged to $389.6 million from $44.8 million a year earlier, boosted by a $268.4 million unrealized gain on derivative assets linked to eBay stock. Operating income turned positive at $143.3 million versus a loss of $10.8 million. The US contributed $651.1 million in sales and $144.6 million in operating income. The board approved a new $2 billion share repurchase authorization through June 2029. The results come after eBay rejected GameStop's unsolicited $55.5 billion takeover proposal, calling it 'neither credible nor attractive.'
Yahoo FinanceGameStop Jumps 10% on Record Profit, $2 Billion Buyback as eBay Bid Battle Intensifies
GameStop (GME) shares surged 10% to $23 after reporting a record quarterly net income of $389.6 million for Q1 FY2026, driven by a 14% sales increase and a 65% surge in collectibles revenue. The board approved a new $2 billion share buyback program through 2029. However, the headline profit includes a $268.4 million unrealized derivative gain on eBay stock; adjusted net income was $179.3 million. Meanwhile, GameStop chairman Ryan Cohen increased his eBay stake to 7% and continues to pursue a $56 billion takeover bid after eBay rejected the offer. eBay stock was flat near $109.36. The results mark a significant operational turnaround, with operating income swinging to $143.3 million from a loss a year earlier.
Yahoo FinanceGameStock Surges 10% on Record Profit and $2 Billion Buyback Amid eBay Bid Battle
GameStop shares jumped 10% to $23 on June 3, 2026, after the company reported a record quarterly net income of $389.6 million for Q1 FY2026, driven by a 14% revenue increase to $835.3 million and a 65% surge in collectibles sales. The board approved a new $2 billion share buyback program through June 2029. However, the headline profit includes a $268.4 million unrealized derivative gain on eBay stock options; adjusted net income was $179.3 million. Meanwhile, GameStop chairman Ryan Cohen increased his eBay stake to 7% and may bypass the board after eBay rejected his $56 billion takeover offer. eBay shares were nearly flat at $109.36. The stock rebound follows a 21% decline over the prior month.
Yahoo FinanceGameStop Q1 2026 Earnings: Record Profit and $2 Billion Buyback
GameStop reported a record net income of $389.6 million for Q1 2026, driven by a 14% rise in revenue to $835.3 million, fueled by strong collectibles sales which accounted for nearly 42% of total revenue. The company's board approved a $2 billion share repurchase authorization, superseding a 2019 plan. Operating income swung to a profit of $143.3 million from a loss a year earlier. The record profit was boosted by a $268.4 million unrealized gain on eBay stock options and $83.7 million in interest income. GameStop continues its pursuit to acquire eBay, having made a $55.5 billion non-binding proposal that eBay rejected. GameStop held $9.7 billion in cash and securities and carried $4.17 billion in long-term debt. Shares rose over 7% in after-hours trading.
Yahoo FinanceGameStop Seeks to Boost Share Count as eBay Pursuit Continues After Rejection
GameStop (GME) is seeking shareholder approval to increase its authorized share count from 1 billion to 2.5 billion, according to an SEC filing ahead of its July 7 annual meeting. The move is aimed at maintaining flexibility for potential acquisitions, including its ongoing pursuit of eBay (EBAY). GameStop's unsolicited $55 billion half-stock, half-cash offer for eBay was recently rejected as 'neither credible nor attractive.' Despite the rejection, GameStop has increased its stake in eBay to about 6% by purchasing 25 million common shares and using put/call pairs. The company also holds over $500 million in Bitcoin and is pursuing a covered call strategy on its crypto holdings. GME shares were down 1.93% on the day of the report, while EBAY shares were down 0.19%.
Yahoo FinanceGameStop Seeks to Boost Share Count as eBay Pursuit Continues After Rejection
Gaming retailer GameStop is seeking to add 1.5 billion shares to its authorized share count in order to maximize financial flexibility. This move comes as the company continues its pursuit of eBay, despite a previous rejection. The article, published by Decrypt on May 22, 2026, highlights GameStop's strategic efforts to strengthen its financial position amid ongoing acquisition attempts.
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