How did GameStop acquire the stake?

GameStop converted financial derivatives (such as options or swaps) into common shares of eBay.

Did GameStop previously try to buy eBay?

Yes, eBay rejected a previous acquisition offer from GameStop before the stake was built.

Who is eBay's largest shareholder?

Vanguard Group is eBay's largest shareholder, with GameStop now the second-largest.

GameStop Builds 9.8% eBay Stake After Rejected Bid

Ryan Cohen converted derivatives into 43.4 million eBay shares, giving GameStop a 9.8% stake in the auction platform. The move follows a previously rejected acquisition offer from GameStop.

July 20, 2026

2 min read

Source: GuruFocus.com

Key Numbers

stake percentage

9.8%

43.4 million

GameStop (GME) announced it has built a 9.8% stake in eBay (EBAY) by converting financial derivatives into 43.4 million shares of eBay, according to a regulatory filing. The move comes after eBay rejected a previous acquisition offer from GameStop.

Deal Details

Value: Based on eBay's closing price of $58.40 on Friday, the stake is worth approximately $2.5 billion.
Instrument: Derivatives (options or swaps) were converted into common shares.
Shareholder: GameStop becomes eBay's second-largest shareholder after Vanguard Group.

Rationale

GameStop, led by Chairman Ryan Cohen, appears to be seeking influence at eBay after failed acquisition attempts. Cohen may push for strategic actions such as share buybacks or divestitures of non-core assets.

Regulatory Challenges

A stake below 10% does not require Hart-Scott-Rodino antitrust approval, but any attempt to increase the stake could face regulatory scrutiny.

Impact on Stocks

eBay shares rose 2.3% in after-hours trading following the announcement. GameStop shares were little changed. Investors may pressure eBay to improve performance or consider strategic alternatives.

Frequently Asked Questions

GameStop holds a 9.8% stake in eBay, equivalent to 43.4 million shares.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.