GameStop raises eBay stake to nearly 10% after takeover bid rejection

Ebube Jones Tue, July 21, 2026 at 1:54 PM PDT | 5 min read

• GME: -0.87%
• EBAY: -1.85%
• GME31248-USD: -1.56%

GameStop (GME) was expected to accept eBay's (EBAY) rejection and move on. Instead, it has pushed harder. According to a recent SEC filing, the company has increased its stake in eBay to nearly 10%, after starting the year with approximately a 5% economic stake built through derivatives and direct share purchases.

This increase comes immediately after eBay's board rejected GameStop's roughly $55–56 billion offer, dismissing the bid as "neither credible nor attractive." The board questioned how a much smaller company could finance the deal.

Now, with the offer turned down but the stake enlarged to around 43 million shares, Ryan Cohen has shifted from hopeful buyer to one of eBay's most significant shareholders.

If this is the response to a very public rejection, the next step matters. Does Cohen quietly scale back, or is this near-10% holding simply the first move in a longer fight over who gets to shape eBay's future?

GameStop's Financial Setup for the eBay Fight

GameStop operates approximately 1,600 stores from Texas, selling physical games, collectibles, and refurbished technology. Its market value now stands at $9.76 billion as it leans harder into an e-commerce story built around eBay.

Performance Metrics:

• Year-to-date (YTD) performance: +8.34%
• 52-week performance: -10.10%

Valuation:

• Trailing price-to-earnings: 16.21x (vs. sector median of 20.34x)
• Price-to-sales: 2.61x (vs. sector median of 0.94x)

These figures suggest investors are giving GameStop's revenue a clear premium.

GameStop advanced its strategy with a non-binding offer to buy eBay for $125 per share — a roughly $55.5 billion deal split 50% cash and 50% GME stock. The offer was pitched as a way to tie its stores to eBay's marketplace.

The offer came at approximately a 46% premium to eBay's Feb. 4 closing price — the same day GameStop began building a 5% stake in eBay through derivatives and direct share purchases, setting up what is now a near-10% holding.

The eBay board later rejected the bid as "neither credible nor attractive," arguing that eBay's market value is almost four times GameStop's. The board also raised doubts over financing, even with roughly $9.4 billion of cash and a "highly confident" $20 billion debt letter, while pointing to leverage, execution, and governance risks.

Recent Financial Highlights (April 2026):

• Sales: ~$835.3 million
• Net income: ~$389.6 million
• Revenue declining, but profit rising on tighter cost control
• Operating cash flow: ~$337.4 million
• Net cash flow: ~$1.08 billion

These numbers give Cohen real cash to work with as he turns that eBay stake into a key part of his strategy.

Ryan Cohen's 10% eBay Power Play

Ryan Cohen is clearly treating eBay as his main target, not a side bet. GameStop now holds approximately 43.4 million eBay shares — roughly 9.8% of the company — after converting earlier derivatives into straight stock and spending significant cash to build that position.

Cohen is also putting himself on the line, committing around $500 million of his own money to support the deal. He has dropped a proposed CEO performance award reportedly worth up to $35 billion, ensuring the focus remains on eBay rather than his compensation.

In interviews, he has been blunt, stating he did not want to be the CEO of GameStop and instead wants to be the CEO of eBay. Cohen claims he will do whatever it takes.