GameStop, the video game retailer, disclosed on Monday that it now holds approximately 9.8% of e-commerce platform eBay's common stock, equivalent to about 43.4 million shares, after converting derivative holdings. This move follows GameStop's previous, unsuccessful proposal to acquire eBay and signals a new phase in the company's strategic positioning within the e-commerce sector.
The equity increase was spearheaded by GameStop Chairman Ryan Cohen. According to a Schedule 13D filing with the U.S. Securities and Exchange Commission, the company previously held a substantial derivative position in eBay and recently converted those derivatives into common stock, making it one of eBay's largest institutional shareholders. The filing also revealed that GameStop had submitted a non-binding acquisition proposal to eBay's board in June 2026, offering to buy all outstanding shares for approximately $72 per share in a deal valued at over $35 billion, an offer which was rejected by eBay's board.
In response to this news, shares of eBay surged roughly 9% in pre-market trading on the Nasdaq on Monday, while GameStop shares rose about 4%. Market analysts suggest that by taking a large equity stake instead of pursuing a direct acquisition, GameStop could still exert influence over eBay's strategic decisions, potentially pushing for management changes, asset sales, or business restructuring.
GameStop has been seeking to transform from a traditional brick-and-mortar game retailer into a technology and e-commerce company in recent years. Under Ryan Cohen's leadership, the company has amassed a cash reserve exceeding $4 billion and has made multiple attempts to enter new business areas through investments and mergers and acquisitions. GameStop has previously invested in several technology companies and cryptocurrency-related assets.
At the time of reporting, neither eBay nor GameStop had provided further comment on the matter. Analysts anticipate GameStop's next steps could include nominating board members or initiating a proxy fight, depending on how eBay's board responds to its shareholding. This development has also fueled market expectations for increased merger and acquisition activity in the technology and retail sectors.