GameStop Shares Slip as Shareholders Approve Stock Increase to Fund Its $56 Billion eBay Takeover Bid

Shares of GameStop Corp. fell Wednesday, trading at $21.82, down 38 cents, or 1.71 percent, a day after shareholders overwhelmingly approved a package of governance proposals designed to give the video game retailer greater flexibility to pursue its long-running attempt to acquire eBay.

Note: This article is intended to provide factual context and does not constitute financial advice. Readers should consult a licensed financial advisor before making investment decisions.

GameStop shareholders approved all proposals presented at the company's 2026 Annual Meeting, held Tuesday at 10 a.m. Central time, including an amendment to the company's certificate of incorporation increasing the number of authorized shares of Class A common stock to 2.5 billion. The amendment received the affirmative vote of 68.7 percent of votes cast, according to a company statement, giving GameStop expanded capacity to issue common stock in connection with strategic transactions, including its proposed acquisition of eBay. Shareholders also re-elected all five director nominees, approved an advisory vote on executive compensation, and ratified the company's independent registered public accounting firm.

The share authorization increase is directly tied to GameStop's continued pursuit of eBay, a deal that has developed in stages over recent months under the direction of GameStop chairman and chief executive Ryan Cohen. On May 3, GameStop delivered a non-binding proposal to eBay's board of directors seeking to acquire all outstanding common stock of eBay that GameStop does not already own, at a price of $125 per share, to be paid through a combination of cash and GameStop common stock, a transaction that has been reported to be valued at approximately $56 billion.

GameStop's position in the deal is already backed by a meaningful existing stake. According to company disclosures, GameStop directly holds 4,343,725 shares of eBay common stock, and has separately entered into a series of American-style put/call option transactions, expiring February 23, 2028, with an unaffiliated financial institution that provide economic exposure to an additional 39,046,658 shares of eBay stock. Those option arrangements were previously settleable only in cash, but following the satisfaction of a regulatory condition under the Hart-Scott-Rodino Antitrust Improvements Act on June 3, GameStop and its counterparty now have the option, though not the obligation, to settle the transactions through physical delivery of eBay shares rather than cash.

GameStop's leadership has continued to publicly affirm its commitment to the deal despite eBay's board having previously rejected the company's takeover overture. Cohen has been vocal about his interest in the acquisition, telling reporters in early June, "I want to own eBay," while outlining plans that would involve cutting costs at the e-commerce platform and positioning it as a more direct competitor to Amazon. GameStop reiterated in a late-June statement that its leadership remains focused on advancing the proposed acquisition, with additional transaction-related materials described as forthcoming.

Alongside the eBay pursuit, GameStop has continued to update investors on its broader financial outlook. In late June, the company said it currently expects to generate adjusted EBITDA in excess of $600 million for fiscal year 2026, the period ending January 30, 2027, compared with adjusted EBITDA of $345.4 million in fiscal year 2025, representing a significant projected improvement in the company's underlying operating performance.

GameStop's stock has remained a subject of active trading and analyst commentary throughout 2026, reflecting the company's ongoing transformation under Cohen's leadership. In addition to the eBay pursuit, GameStop has continued its long-running shift toward diversifying beyond its traditional brick-and-mortar video game retail business. The company began investing company cash in bitcoin last year, disclosing a purchase of 4,710 bitcoin as part of that broader strategy, while also continuing to close a significant number of underperforming physical retail locations, having shuttered 590 stores in 2024 alone with additional closures planned amid ongoing declines in traditional retail revenue.

The company has also taken steps to raise additional capital in recent weeks. According to Fox Business, GameStop's sale of 75 million shares of common stock raised more than $2 billion in gross proceeds, funds that could support both the company's ongoing digital asset strategy and its pursuit of eBay, depending on how the acquisition process ultimately unfolds.

GameStop's approach to compensating its top executive has also drawn scrutiny in recent months. According to CNBC, Cohen previously agreed to forgo a proposed $35 billion pay package tied to specific performance milestones, even as questions remained about whether the company would ultimately be able to complete the eBay acquisition given the scale of financing required and eBay's initial rejection of GameStop's proposal.

GameStop, headquartered in Grapevine, Texas, and founded in 1996, operates as a specialty retailer of games, collectibles and entertainment products across the United States, Australia and Europe, selling new and pre-owned gaming platforms, accessories, software and digital content through both physical stores and e-commerce platforms. The company's stock has remained a frequent subject of retail investor interest since its emergence as a prominent "meme stock" beginning in 2021, a dynamic that has continued to shape trading patterns and options activity around the stock through the current eBay acquisition saga.

Options market activity tracked by Cboe has shown fluctuating sentiment toward GameStop shares in recent weeks, with mixed positioning reflecting ongoing investor uncertainty about whether the eBay transaction will ultimately proceed and, if so, on what terms. Wednesday's modest decline in GameStop shares came against a broader backdrop of market volatility tied to renewed geopolitical tensions between the United States and Iran, which weighed on major indexes and contributed to a generally risk-off tone across equity markets during the session.

With shareholder approval for the expanded share authorization now secured, GameStop has cleared one procedural hurdle in its pursuit of eBay, though the ultimate outcome of the proposed acquisition remains uncertain given eBay's prior rejection of the company's offer and the substantial scale of financing and regulatory approval that any completed transaction of this size would require. Investors are likely to continue monitoring further developments on the deal, along with GameStop's broader financial performance and digital asset strategy, as the company works to advance what would represent one of the more unconventional corporate acquisitions in recent retail industry history.