GameStop Just Raised Its Stake in eBay to 10% After the Board Rejected Its Takeover Bid. Ryan Cohen Is Preparing for a Bigger Fight.

GameStop (GME) was expected to accept eBay’s (EBAY) “no” and move on. Instead, it has pushed harder. The company has lifted its stake in eBay, again, to nearly 10%, according to a recent SEC filing, after starting the year with about a 5% economic stake built through derivatives and direct share purchases.

That increase comes right after eBay’s board rejected GameStop’s roughly $55–56 billion offer, dismissing the bid as “neither credible nor attractive.” They questioned how a much smaller company could finance the deal. 

Now, with the offer turned down but the stake enlarged to around 43 million shares, Ryan Cohen has shifted from hopeful buyer to one of eBay’s most important shareholders.

If this is the response to a very public rejection, the next step matters. Does Cohen quietly scale back, or is this near‑10% holding simply the first move in a longer fight over who gets to shape eBay’s future?   

GameStop’s Financial Setup for the eBay Fight

GameStop runs about 1,600 stores from Texas, selling physical games, collectibles, and refurbished tech, and its market value now sits at $9.76 billion as it leans harder into an e‑commerce story built around eBay.

GME has a year‑to‑date (YTD) performance of 8.34% and a 52‑week move of -10.10%.   

The company’s valuation is at 16.21 times trailing price-to-earnings versus a sector median of 20.34 times, and at 2.61 times sales versus a 0.94 times sector median, suggesting investors are giving its revenue a clear premium.

GameStop pushed that story forward with a non‑binding offer to buy eBay for $125 per share, a roughly $55.5 billion deal split 50% cash and 50% GME stock, pitched as a way to tie its stores to eBay’s marketplace.

That offer came at about a 46% premium to eBay’s Feb. 4 closing price, the same day GameStop started building a 5% stake in eBay through derivatives and direct share purchases, setting up what is now a near‑10% holding. 

The eBay board later rejected the bid as “neither credible nor attractive,” arguing that eBay’s market value is almost four times GameStop’s and raising doubts over financing even with roughly $9.4 billion of cash and a “highly confident” $20 billion debt letter, while also pointing to leverage, execution and governance risks.

The recent numbers still matter for judging the distance Ryan Cohen can push this plan. It shows April 2026 sales of about $835.3 million and net income near $389.6 million, with revenue falling but profit jumping on tighter cost control. 

GME reported operating cash flow around $337.4 million and net cash flow roughly $1.08 billion, giving Cohen real cash to work with as he turns that eBay stake into a key part of his strategy.   

Ryan Cohen’s 10% eBay Power Play

Ryan Cohen is clearly treating eBay as his main target, not a side bet. GameStop now holds about 43.4 million eBay shares, roughly 9.8% of the company, after turning earlier derivatives into straight stock and spending serious cash to build that position.

Cohen is also putting himself on the line, committing around $500 million of his own money to support the deal. He has dropped a proposed CEO performance award that was reportedly worth up to $35 billion so the focus stays on eBay rather than his pay. 

In interviews, he has been blunt, saying he did not want to be the CEO of GameStop and instead wants to be the CEO of eBay. Cohen claims he will do whatever it takes, including going directly to shareholders if the board keeps saying no.

Taken together, the near-10 % stake, the personal capital, the scrapped award, and those comments tell a simple story. Cohen is getting ready for a bigger fight over who controls eBay’s future, not quietly backing away from it.  

What Wall Street Really Thinks of GameStop Right Now

GameStop is not a favorite name on Wall Street right now, and that matters when you look at how people view Ryan Cohen’s push for eBay. Most big firms do not even bother putting out formal earnings estimates on GME, so the usual analyst playbook is thin.

The company still expects Adjusted EBITDA to top $600 million this year, up from about $345.4 million in 2025, which is a big jump and helps its case that it can back a deal as well as its own business. 

Some well-known investors have already walked away. Michael Burry wrote on Substack on May 5, 2026,  that he had sold his entire GameStop stake after the surprise $55.5 billion bid for eBay. He warned that markets too often dress up heavy debt as creativity and closed with a blunt line, saying “I of all people should have known.”

The Street’s view is much harsher on GME. Their consensus rating sits at “Strong Sell,” and the average target is around $13.50 per share. That implies roughly a 38% drop if those targets prove right.    

Conclusion

Ryan Cohen looks ready to keep pushing, not walk away. GameStop didn’t lift its eBay stake just for show. That 10% holding gives him real influence, and the deal terms plus his comments all point to more pressure on eBay’s board rather than a quiet exit.

GME and EBAY will probably trade unevenly for a while. GameStop’s stock has more downside risk if the deal keeps dragging on. eBay’s shares have a better chance of drifting higher as investors keep betting that some kind of strategic change could still happen.