GameStop is moving forward with its attempted hostile takeover of eBay. The timing is significant, as Sony prepares to eliminate the product that once defined the video game retailer’s business.
According to a new regulatory filing, GameStop now owns 43.4 million shares of eBay, representing approximately 9.8% of the e-commerce company. The retailer dramatically increased its position after eBay rejected its unsolicited $56 billion acquisition proposal in May.
The exterior of a GameStop retail location – YouTube, JRPGLife
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GameStop initially disclosed a 5% economic stake obtained through shares and derivatives. In its latest disclosure, the company revealed that it purchased another 3.5 million shares for approximately $381 million in June, and paid an additional $4.0 million to convert options covering 39 million shares into common stock.
The moves bring GameStop just below the 10% threshold and signal that CEO Ryan Cohen’s hostile takeover attempt of eBay has effectively begun.
GameStop Is “Coming for eBay”
GameStop originally offered eBay shareholders $125 per share, divided evenly between cash and GameStop stock. However, eBay’s board rejected the nonbinding proposal, calling it “neither credible nor attractive.”
Cohen has repeatedly suggested that he will bypass the board and take his case directly to eBay shareholders.
“I’m not going to call my shots, but we’re coming for eBay one way or another,” Cohen said during a Bloomberg Tech interview included in a GameStop filing with the SEC.
GameStop CEO Ryan Cohen – Bloomberg Tech, YouTube
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According to Reuters, GameStop shareholders recently approved an increase in the number of shares the company may issue, giving it additional flexibility to finance the transaction. Cohen has also promised to invest $500 million of his own money.
Nevertheless, questions remain about how GameStop, currently valued at approximately $10 billion, could afford a company worth nearly five times as much. The proposed financing relies partly on a nonbinding “highly confident” letter from TD Securities regarding up to $20 billion in debt financing.
Cohen insists that multiple parties are interested in financing the transaction. When asked whether he would increase the offer, he responded, “I’m not going to negotiate against myself.”
Physical Games Are “Totally Irrelevant”
GameStop’s attempted hostile takeover of eBay comes as Sony reportedly plans to stop producing physical PlayStation games in 2028. Recent developments at Microsoft suggest that Xbox is moving in a similar direction. Additionally, Grand Theft Auto VI—one of the most highly anticipated games of all time—is launching exclusively as a digital release.
A Playstation 5 console and controller – YouTube, PlayStation
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Such a dramatic shift in how games are sold would once have represented an existential threat to the retailer. Cohen now claims it does not matter.
“It doesn’t matter at all,” Cohen told Bloomberg. “Software, it mattered in the past. Software today makes up less than 12% of the business, and collectibles makes up over half the business. So, it’s totally, totally irrelevant.”
GameStop Has Already Moved Beyond Games
However, GameStop’s fiscal 2025 results tell a somewhat different story. Software generated $729.3 million, representing 20.1% of total sales. Collectibles accounted for $1.06 billion, or 29.2%, while hardware and accessories remained the company’s largest category.
Even so, the overall direction is clear. Software revenue declined 27.5% during the year, while collectibles revenue grew by nearly 48%.
GameStop is no longer betting its future on selling PlayStation or Xbox discs. With its ownership of eBay approaching 10%, Cohen appears determined to transform the former video game retailer into something much larger—and he is no longer waiting for eBay’s board to cooperate.
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