GameStop by The Image Party via Shutterstock
GameStop (GME) has spent the last few years trying to prove it is more than the mall retailer people remember from the days of midnight game launches and stacks of used discs. Under CEO Ryan Cohen, the company has already slashed costs, closed stores, and leaned harder into collectibles. But now, Cohen appears ready to swing for the fences with an even bigger idea – bringing e-commerce veteran eBay (EBAY) into the fold.
Wall Street thought the proposal might quietly fade after eBay brushed it aside. Instead, Cohen is doubling down. In a move that raised eyebrows, he asked GameStop’s board to scrap his massive performance award, saying management’s eyes need to stay on the ball and remain focused on operations and the pursuit of eBay. The message was clear that this is not just another headline-grabbing stunt.
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Cohen’s GameStop has steadily built a sizable stake in eBay, raising it to roughly 7.8% of the company’s outstanding shares through derivative-linked put and call structures, and now plans to take his takeover pitch directly to eBay shareholders. He believes the two companies fit together like pieces of the same puzzle. GameStop’s booming trading card business and eBay’s dominance in collectibles could create a stronger platform capable of taking a bigger bite out of online rivals.
Still, there is an elephant in the room. GameStop, worth $9.46 billion, is trying to buy a company roughly five times its size at $48.38 billion valuation. That has investors scratching their heads and wondering whether Cohen is holding a royal flush, or simply pushing all his chips to the center of the table.
With more details expected soon, Wall Street is wondering whether the bold move to acquire eBay will become GameStop’s next winning level or a bridge too far. Either way, Ryan Cohen is making it clear that the eBay pursuit is far from game over.
About GameStop Stock
Founded in 1996 and headquartered in…
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