GameStop Boosts eBay Stake to 6.55% After Rejected Bid

What happened

GameStop increased its stake in eBay to 6.55%, a filing revealed on Tuesday, just days after eBay rejected its $56 billion takeover offer. This escalation signals GameStop's determination to pursue the acquisition, likely through a hostile route or direct shareholder engagement. Meanwhile, GameStop's core retail business continues to shrink, with FY2025 sales down 5.1% and store closures at 727. The company's massive cash pile of $9 billion provides the means for such aggressive capital allocation, but also introduces risks from its Bitcoin derivatives program. The market now awaits critical milestones: the promised Schedule 13D filing and HSR antitrust notification, which will clarify the path forward.

Implication

Long-term value hinges on whether GameStop can execute a transformational acquisition without overstretching its balance sheet or exposing shareholders to excessive financial risk. The increased stake reduces optionality but raises the stakes—if the deal fails, the stock could revert to a retail-only valuation around $20.

Thesis delta

The news confirms GameStop is escalating its acquisition campaign after the rejection, increasing the probability of a hostile bid. This reduces the wait-and-see stance slightly, as the company is committing more capital to the eBay pursuit. However, the core thesis remains unchanged: the stock prices optionality on a deal far from certain, while the underlying retail business continues to decline.