GameStop (GME) tried to buy eBay once already, and the answer was no. That rejection would have ended most takeover attempts. Cohen is not backing down.
Instead, GameStop spent the following weeks building a bigger position and a stronger balance sheet, the opposite of what a retreat looks like.
GameStop’s first eBay offer crashed into a wall of skepticism
In May, GameStop submitted a non-binding proposal to acquire all of eBay [EBAY] at $125 per share in cash and stock, according to a filing on GameStop’s investor relations site.
The offer represented a 46% premium to eBay’s stock price before GameStop began buying shares, the filing states.
GameStop had already built a 5% stake in eBay through stock and derivatives by the time it went public with the bid.
Cohen’s pitch centered on GameStop’s 1,600 retail stores, which he argued could serve as a national network for authenticating and fulfilling eBay orders, according to CNBC.
eBay’s board rejected the proposal nine days later, calling it “neither credible nor attractive” in a letter from chairman Paul Pressler.
Michael M. Santiago / Getty Images
The board cited uncertainty about how GameStop would finance a deal worth roughly $55 billion, as well as concerns about combining the two companies’ operations.
Cohen struggled to clearly explain the financing plan in a televised interview that followed, which did little to ease Wall Street’s doubts.
eBay, for its part, said in its rejection letter that it had “sharpened its strategic focus” under existing management and saw no need for a buyer.
GameStop is answering rejection with bigger bets, not retreat
Rather than walk away, Cohen has kept buying. GameStop’s economic stake in eBay has grown to 7.8% through additional options trading, according to a securities filing.
Cohen told Barron’s he intends to own the stock for the long term, regardless of how the board feels about a deal.
GameStop also gave Wall Street a reason to take the pursuit seriously. The company now projects adjusted EBITDA above $600 million for the fiscal year ending January 2027, nearly double the $345.4 million it reported in fiscal 2025.
Shares rose almost 3% in after-hours trading on Friday.
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Cohen also gave up a performance-based pay package tied to GameStop’s results, according to the same report, choosing instead to keep his focus on the eBay pursuit.
For a CEO who already holds a large equity stake, the move reads less as sacrifice and more as a signal about where he thinks the real value sits.
eBay is still nearly five times GameStop’s size
The math has not gotten easier. At the time of the rejection, eBay carried a market value near $48 billion, while GameStop’s was roughly $11 billion, according to CNN.
A stronger earnings outlook helps GameStop’s credibility, but it does not close a $38 billion gap on its own.
GameStop’s original financing plan leaned on roughly $9.4 billion in cash and liquid assets, plus up to $20 billion in third-party financing.
That structure left several analysts unconvinced the first time around, and nothing in the company’s recent guidance changes the size of the gap it still needs to close.
eBay’s board has also pointed to its own turnaround as a reason to stay independent. eBay shares had already gained 24% on the year by the time of the rejection, giving the board a stronger argument for staying the course than a struggling company would have.
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Real change or just for show?
What began as an unsolicited takeover bid has evolved into a crucial test of GameStop’s post-meme transformation.
Wall Street is watching closely to see if the company’s recent overhaul represents deep, durable restructuring or merely cosmetic damage control.
Stronger earnings guidance buys Ryan Cohen more time and credibility with investors, but it does not actually buy eBay.
The next definitive test will be whether GameStop can return with a financing structure solid enough to convince its board to stop calling the deal unrealistic, or if this instead devolves into a multi-year stake-building campaign with no clear endpoint.
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