GameStop (NYSE: GME) has reaffirmed its commitment to acquiring eBay despite the e-commerce giant’s outright rejection of the unsolicited takeover proposal.
The company now projects adjusted EBITDA for fiscal year 2026, which closes January 30, 2027, to surpass $600 million, a substantial increase from the $345.4 million posted in fiscal year 2025.
GameStop stock climbed more than 2% in after-hours trading following the release of the updated financial outlook and deal reaffirmation.
A short regulatory filing released Friday reiterated GameStop’s intent to pursue the eBay acquisition, with the company noting that further documentation related to the proposed transaction will be released in the coming days.
Beyond affirming its intent, GameStop offered no explanation of how it plans to move the deal forward, according to Reuters.
CEO Ryan Cohen put forward a non-binding proposal in May to acquire all of eBay’s outstanding shares at $125 apiece, split evenly between cash and GameStop stock, placing eBay’s equity value at roughly $55.5 billion.
Cohen pointed to approximately $9.4 billion in GameStop’s cash reserves and up to $20 billion in debt backed by a commitment letter from TD Securities to fund the transaction.
He said he envisioned leading the merged company as chief executive while forgoing salary and cash bonuses, a compensation structure that raised immediate questions from eBay’s board.
eBay’s board rejected the proposal, calling it “neither credible nor attractive,” and raised objections covering how the deal would be financed, how the combined company would be run, and the structure of Cohen’s compensation.
GameStop, with a market value of roughly $10 billion, is attempting to acquire a company approximately five times its own size, a gap that has drawn widespread skepticism from analysts and investors.
The audacity of the bid is underscored by the sheer scale of the financing challenge Cohen faces, with critics questioning whether the proposed debt structure is realistic given GameStop’s relatively modest market capitalization.
Earlier this month, GameStop reported the most profitable quarter in its history, posting net income of $389.6 million on revenue of $835.3 million, a 14% increase from the prior year.
The record quarterly results have given Cohen a stronger platform from which to press the eBay case, even as major questions about deal viability remain unanswered.
