GameStop Reaffirms $56B Bid for eBay, Sees FY26 EBITDA Above $600M
GME•GameStop reiterated its commitment to a $56 billion cash-and-stock bid for eBay and holds a 7.8% stake after the marketplace rejected its unsolicited offer. The retailer forecasts over $600 million in adjusted EBITDA for fiscal 2026, up from $345 million, following record quarterly net income of $389.6 million.
1. Deal Reaffirmation
GameStop reaffirmed its pursuit of a $56 billion cash-and-stock proposal for eBay despite the online marketplace rejecting the unsolicited offer, maintaining a 7.8% ownership stake and emphasizing the long-term strategic rationale for the transaction.
2. Earnings and Projections
The company projects adjusted EBITDA above $600 million for fiscal 2026, up from $345 million in fiscal 2025, driven by record quarterly net income of $389.6 million, first-quarter operating income of $143.3 million and a 14% year-over-year increase in net sales.
3. CEO Compensation Waiver
Chief Executive Ryan Cohen waived a potential performance-based compensation package to focus on advancing the proposed acquisition, underlining management’s commitment to completing the transaction and aligning leadership incentives with shareholder value creation.
4. Stock Performance and Outlook
Shares climbed 1.4% in premarket trading on these company-specific developments despite broader market declines; the stock trades between a 52-week low of $19.93 and high of $28.10, with elevated short interest suggesting potential volatility ahead.
