GameStop Boosts eBay Stake to 6.6% After $56B Bid Rejection
GameStop has increased its economic interest in eBay to 6.6%, up from roughly 5%, by acquiring 25,000 direct shares and options covering 6.55% of outstanding stock. This follows eBay’s rejection of GameStop’s roughly $56 billion takeover offer and signals CEO Ryan Cohen may push for a special meeting or board seats.
1. Details of Stake Increase
GameStop filed a report with the U.S. Securities and Exchange Commission showing it now holds 25,000 direct common shares of eBay plus additional shares via put/call pairs, raising its total economic interest to about 6.55% of outstanding eBay stock.
2. Background of Takeover Bid
This stake increase comes days after CEO Ryan Cohen made an unsolicited $56 billion takeover proposal for eBay, which eBay’s board rejected over financing concerns and confidence in its ongoing turnaround; eBay remains roughly five times larger than GameStop by market value.
3. Implications and Next Steps
Cohen has stated he remains committed to pursuing the acquisition and may seek a special shareholder meeting or board representation to advance his proposal; analysts note GameStop shares are up about 9% this year while eBay shares have gained roughly 35%.