GameStop (NYSE: GME) has expanded its economic exposure in eBay (NASDAQ: EBAY) to 7.78%, up from the 6.55% stake reported just days earlier on May 20.
A new Schedule 13D filing submitted to the U.S. Securities and Exchange Commission revealed that GameStop now holds direct ownership of 25,000 eBay shares alongside derivative-based exposure tied to more than 34.5 million additional shares through put and call arrangements.
The combined direct and derivative-linked position represents approximately 7.78% of eBay’s outstanding common stock, based on roughly 444 million shares outstanding as of late April.
GameStop disclosed that the derivative contracts carry strike prices ranging from approximately $84.74 to $118.28 per share, and could later convert into physical shares pending federal clearance under the Hart-Scott-Rodino Act.
Until that regulatory clearance is obtained, GameStop said it does not maintain voting authority over the underlying stock connected to those derivative contracts.
The company paid roughly $1.59 million in net premiums for an additional 5.43 million-share exposure tied to its newest derivatives arrangements.
The filing follows GameStop’s earlier attempt to acquire eBay in a deal valued at approximately $56 billion, which eBay rejected, calling the offer “neither credible nor attractive.”
CEO Ryan Cohen has been openly pushing for changes at eBay, calling for nearly $2 billion in annual expense reductions spanning advertising, administrative operations, and product development.
On Wednesday, Cohen reshared a post on X criticizing eBay’s leadership over minimal insider share purchases, citing data from insider-trading tracker OpenInsider showing only 14 eBay insiders collectively purchased fewer than 150,000 split-adjusted shares on the open market over the last 22 years.
According to the post, just two current insiders, Chairman Paul S. Pressler and Director Logan Green, remain among those buyers, with their combined purchases totaling slightly more than 11,000 shares.
The post also noted that GameStop acquired more than twice as many eBay shares on May 1 alone as the entire current eBay board has bought collectively using personal funds over several years.
Analysts have raised doubts about GameStop’s ability to secure the $20 billion in financing the deal would require, pointing to the company’s market value of approximately $10 billion as a significant obstacle.
GME stock edged 0.05% higher overnight, while year-to-date performance shows GME gaining nearly 8% compared to EBAY’s surge of over 28%.
Retail sentiment around GameStop on Stocktwits remained in bearish territory, though one user expressed confidence, writing: “waited 6 years for them to put my favorite store out of business. Each enemy more certain than the last…literally every single thing they said would put GameStop out of business…did not put GameStop out of business. This eBay thing is no different. Just the next enemy to fall.”
