Is GameStop Still Buying eBay? Ryan Cohen Sits on a Near-10% Stake as His $56 Billion Takeover Bid Stalls

NEW YORK — Five months after GameStop stunned Wall Street with an unsolicited bid for eBay, the video game retailer's pursuit of the online marketplace remains unresolved, with no deal signed, no formal withdrawal announced and the bidder now holding one of the largest stakes in its target.

The question hanging over both stocks is whether GameStop CEO Ryan Cohen still intends to buy eBay outright, or whether he will settle for something smaller. Signals from the company over the summer pointed in both directions.

In August, Bloomberg News reported, citing people familiar with the matter, that Cohen was considering withdrawing the $56 billion bid and might instead pursue a partnership or joint venture with the e-commerce company. As part of any partnership, GameStop would seek seats on eBay's board, Bloomberg reported. GameStop had not made a final decision, and Cohen could still pursue other options, according to the report.

Neither company has since announced a completed agreement, and GameStop has not publicly abandoned its offer.

A bid four times its size

The saga began in early May. GameStop put forward an unsolicited, non-binding proposal to buy eBay in a cash-and-stock transaction valued at about $55.5 billion, offering $125 per share. The consideration would be split equally between cash and GameStop common stock.

GameStop said the price represented a 46% premium to eBay's closing price of $85.84 on Feb. 4, 2026, the date it began building its position. At the time, GameStop's market value was just below $12 billion, while eBay's stood at $46 billion.

To finance the deal, GameStop pointed to $20 billion in potential debt financing from TD Securities. Cohen argued he could apply the cost-cutting approach he used at GameStop to eBay, and the company said it had identified $2 billion in annualized cost savings it believed could be achieved within 12 months of closing. It also said its roughly 1,600 U.S. stores could serve as a nationwide network for authentication, intake, fulfillment and live commerce for eBay.

eBay says no

eBay's board moved quickly. On May 12, eBay rejected the proposal, calling the unsolicited bid "neither credible nor attractive." The board raised objections about deal financing, governance of the combined company and Cohen's compensation structure. Many analysts also questioned how GameStop would finance the transaction and the strategic rationale behind it.

Cohen pushed back publicly. In a letter, he argued that shareholders rather than directors should decide the outcome, writing that the board "should not dismiss a $125 per share proposal without engaging on its substance," Reuters reported.

In a June interview with Barron's, later filed with securities regulators, Cohen made his intentions plain, describing eBay as follows: "It's a great business that's been poorly managed."

GameStop backed that rhetoric with action. On June 23, its board granted Cohen's request to remove a proposed CEO performance award from the company's proxy statement, an incentive package worth up to $35 billion that had been contingent on milestones including pushing GameStop's market capitalization to $100 billion. Cohen said he wanted leadership fully focused on GameStop's operating performance and the proposed eBay acquisition.

Days later, GameStop said in a regulatory filing that its "leadership team remains focused on advancing the proposed acquisition of eBay."

Building the stake

Rather than walking away, GameStop kept buying. In July, it disclosed that it had increased its stake in eBay to 9.8%, making it one of the e-commerce company's largest shareholders, while Cohen vowed to pursue a deal "one way or another." That made GameStop eBay's second-largest shareholder behind Vanguard Group funds.

Speaking to the Financial Times in July, Cohen left the door open to alternatives. "We're keeping all our options on the table," he said.

GameStop's own shareholders also cleared a path for a potential stock-heavy offer. Investors at the company's 2026 annual meeting approved a proposal allowing the retailer to issue more stock related to a potential bid for eBay, with the amendment receiving 68.7% of votes cast, according to the company.

eBay stake now drives GameStop's profits

The position has become central to GameStop's finances. As of Aug. 1, the company held approximately 43.4 million shares of eBay common stock with a fair value of about $4.947 billion. During the quarter, GameStop converted its previously disclosed eBay derivative position into direct stock ownership.

GameStop reported second-quarter net income of $298.7 million, or 51 cents per share, up from $168.6 million a year earlier, as gains tied to its eBay stake bolstered the bottom line. That figure included roughly $238 million of net gains related to eBay, partly offset by a loss of about $75 million on digital assets.

The retailer's core business is shrinking but more profitable. Net sales fell to $790.2 million from $972.2 million a year earlier, while collectibles sales rose to $356.3 million, or 45.1% of total sales. Operating income of $160.2 million was the highest for any second quarter in GameStop's history. The company also retired about $1.4 billion in convertible notes in early September, reducing total long-term debt to roughly $2.8 billion.

Cohen has also been putting more of his own money into GameStop. He bought 1,150,680 shares on Sept. 21 at an average price of $22.94, after purchasing another 1 million shares earlier in the month, and now directly owns about 40.5 million shares, or roughly 8% of the company.

eBay keeps growing

eBay, meanwhile, has delivered results that strengthen its board's argument that the company does not need a new owner. The marketplace reported second-quarter revenue of $3.1 billion, up 15%, with gross merchandise volume also rising 15% to $22.4 billion, and it raised its full-year outlook.

"This quarter once again demonstrated our ability to focus on our strategic priorities," eBay CEO Jamie Iannone said in the company's earnings release.

What comes next

The deal's financing math remains the biggest hurdle. Analysts note that Cohen needs eBay's existing investors to approve any deal, and that persuading them to swap their shares for GameStop stock could prove very difficult.

Cohen's remaining paths include raising or restructuring the offer, launching a proxy fight to replace eBay directors, negotiating a commercial partnership with board representation, or simply holding the stake as an investment. A proxy fight to replace eBay board members could take more than a year, according to reporting at the time of the rejection.

Even without a takeover, the stake carries weight on its own. At the end of its latest quarter, GameStop's eBay position was worth about 41% of its recent $12 billion market value. That means GameStop investors are now exposed as much to eBay's share price as to the retailer's own stores.

For now, the answer to whether GameStop is still buying eBay is a qualified one: Cohen has not formally dropped the bid, but there are no signs of a binding offer, and reports suggest he is weighing a less ambitious route. Investors on both sides are likely to look to GameStop's next quarterly report and any new regulatory filings for clues about which way he will move.