GameStop Continues eBay Acquisition Moves... Securing Stakes to Prepare for a Long-Term Battle

Despite Wall Street skepticism, GameStop is persisting with its acquisition strategy toward eBay. CEO Ryan Cohen has quietly secured approximately 10% of eBay shares while preparing for a prolonged campaign. Following eBay's rejection of a $5.6 billion cash-and-stock offer in May over concerns about funding, debt, and Cohen's financial interests, Cohen has pursued behind-the-scenes efforts to counter the decision. Recent actions include nearly doubling GameStop's eBay stake, abandoning a performance-based compensation plan that could have awarded Cohen up to $35 billion, replacing legal and PR advisors, and engaging with major shareholders. Analysts suggest these moves may pave the way for presenting an acquisition proposal directly to shareholders rather than the board. Cohen emphasized maintaining all options, expressing optimism that eBay will eventually negotiate but acknowledging potential delays until the annual shareholder meeting, where further actions remain possible.