GameStop (GME.N), the prominent video game retailer, has increased its stake in e-commerce giant eBay (EBAY.O) to approximately 6.6% from around 5%. This latest move, detailed in a regulatory filing with the U.S. Securities and Exchange Commission, marks a continued effort in GameStop’s unsolicited bid to acquire the online marketplace. The filing specified that GameStop now beneficially owns about 6.55% of eBay’s outstanding common shares, encompassing both directly held stock and shares underlying Put/Call Pairs.
Earlier this month, GameStop Chief Executive Officer Ryan Cohen surprised financial markets with an offer to purchase eBay for roughly $56 billion. eBay, an established e-commerce giant significantly larger than GameStop, swiftly rejected the proposal. The company deemed GameStop’s offer “neither credible nor attractive,” firmly rebuffing the acquisition attempt.
Despite the rejection, Cohen has expressed his intent to persist with the acquisition plan, indicating a willingness to take the offer directly to shareholders if necessary. Market analysts suggest that increasing GameStop’s holdings could be a strategic step to pave the way for options such as calling a special shareholder meeting. In market performance, eBay’s shares have surged 35% this year, driven by robust first-quarter earnings and a renewed focus on high-growth segments like collectibles. Since Jamie Iannone took the helm as eBay CEO in 2020, its stock has climbed over 201%. Conversely, GameStop shares have seen an increase of approximately 9% this year but remain down 65% since Cohen assumed the chairman role in 2021.
