NEW YORK, July 18, 2026 – GameStop Corp. (NYSE: GME) has disclosed ownership of 43.39 million shares of eBay Inc. (NASDAQ: EBAY), representing a 9.8% voting interest, according to a filing with the U.S. Securities and Exchange Commission. The disclosure, made after Friday's market close, sets the stage for a heightened takeover battle when trading resumes on Monday.
eBay shares closed at $112.06 on Friday, marking a 4.4% decline over the past week. GameStop's proposed offer of $125 per share stands 11.5% above that level. Initial estimates indicate an unrealized gain of approximately $425 million on the position, based on a reported cost of about $4.44 billion, or $102.27 per share. The stake's market value was $4.86 billion at Friday's close.
Unlike GameStop's previous exposure, which was primarily held through paired options, this new stake includes direct voting rights. According to the filing, GameStop settled 39.05 million option-related shares on July 17 and purchased an additional 3.52 million shares in June. This shift in leverage alters the dynamics of the takeover attempt.
Financial Implications and Market Context
As of May 2, GameStop held $8.37 billion in cash and marketable securities. The projected expense for acquiring the eBay stake amounts to approximately 53% of these holdings. On Friday, that sum represented 37.5% of GameStop's market capitalization, which stood at about $13.0 billion. This concentration is significant, as GameStop now holds a profitable stake and an influential vote, but would also incur greater costs if the situation escalates.
eBay shares rose 1.0% on Friday, while the S&P 500 slipped 1.0%. However, eBay's week-over-week performance remained negative at -4.4%. The ownership filing was submitted after normal trading hours, making Monday's session the first complete test of market reaction.
Statements from Key Figures
GameStop CEO Ryan Cohen stated, "we're coming for eBay one way or another," though he declined to comment on a possible increase in the offer. The spread between the current market price and the offer remains a key focus for investors. In contrast, eBay Chairman Paul Pressler described the bid in May as "neither credible nor attractive," citing risks related to financing, leverage, governance, and execution. The board has reiterated its support for management's independent strategy.
The $55.5 billion offer consists of a 50-50 split between cash and GameStop stock. A non-binding letter includes the possibility of up to $20 billion in debt, but the deal requires the merged entity to secure an investment-grade credit rating. The funding shortfall remains significant.
eBay's Performance and Strategic Outlook
eBay's operating figures provide a counterpoint to the board's rejection. Revenue for the first quarter climbed 19%, and merchandise volume increased by 18%. For the second quarter, the company projects currency-neutral growth between 8% and 10% for both metrics. Cohen describes Amazon.com Inc. (NASDAQ: AMZN) as the strategic standard, arguing that merging the companies would improve competitiveness, though he acknowledges that scale alone will not fully address the funding shortfall.
eBay's upcoming scheduled event is its earnings call on August 5. Attention next week will focus on Monday's trading session and additional SEC disclosures. A formal board reply may impact the offer spread. Risks include GameStop's inability to secure funding or a potential withdrawal of the plan, which would reduce takeover backing for eBay shares. Conversely, a new offer or activist push could drive the stock higher, while softer growth in the second quarter would make the independent case less compelling.
