GameStop (NYSE: GME) has disclosed ownership of 43.4 million shares in eBay (NASDAQ: EBAY), representing a 9.8% stake in the e-commerce giant, up sharply from roughly 5% in early May.
The move marks a significant escalation in GameStop CEO Ryan Cohen’s pursuit of eBay, after his initial acquisition offer of roughly $56 billion was rejected by eBay’s board.
The videogame retailer converted its economic exposure into common stock over recent weeks, purchasing 3.5 million shares for approximately $381 million last month.
GameStop then settled an additional 39 million shares through put/call pairs on Friday, completing the dramatic buildup of its position in the e-commerce company.
Speaking on Bloomberg Television, Cohen delivered a pointed message to eBay’s leadership, stating, “we’re coming for eBay one way or another.”
Cohen declined to reveal whether he intends to raise his original offer, telling Bloomberg he would not negotiate against himself, signaling a hardened negotiating stance.
Cohen’s original pitch argued that combining GameStop and eBay would allow the merged entity to compete more directly with Amazon (NASDAQ: AMZN) in the broader e-commerce marketplace.
eBay’s board dismissed the cash-and-stock proposal as neither credible nor attractive, citing concerns about the deal’s financial foundations and GameStop’s ability to execute a transaction of this scale.
Financing remains the central question surrounding the bid, with the proposal leaning on a non-binding commitment letter from TD Securities for up to $20 billion in debt.
That debt financing is contingent on the combined company achieving an investment-grade credit rating, a condition that analysts and investors will be closely scrutinizing in the weeks ahead.
GameStop shareholders approved a larger authorized share count last month, providing additional flexibility for Cohen to structure a potential deal using stock as part of the consideration.
Cohen has also committed $500 million of his own money to the effort, a personal financial stake that underscores his determination to push the acquisition forward despite the board’s initial rejection.
GameStop shares were unchanged in premarket trading following the disclosure, while eBay shares moved higher, reflecting market speculation that a revised or sweetened offer could still materialize.
