GameStop wants to take over eBay

Some may still remember. In the middle of the coronavirus era, a spectacular short squeeze in GameStop shares triggered a veritable stock market hype. What happened is well known: Private investors banded together on the infamous subreddit "Wall Street Bets" to "fight back" against "evil" short sellers. As a result of this coordinated action, GameStop's share price briefly rose to over USD 480 per share in January 2021, after trading at around USD 1 per share in summer 2020 (TradingView, 04.05.2026).

The hype surrounding GameStop shares has since calmed down somewhat. GameStop has consolidated its position in recent years under new CEO Ryan Cohen. The company reported a net profit of USD 418 million in the 2025 financial year, compared to USD 131 million in the previous year and a loss of USD 381 million in the 2021 financial year (BBC, 05.05.2026; GameStop, 03.05.2026). This turnaround was primarily achieved through strict cost reductions and the closure of several hundred stores. In 2025 alone, 590 locations were closed (Guardian, 04.05.2026). Strategically, GameStop has shifted its focus to higher-margin categories such as trading cards, retro games and consoles. At the end of January 2026, the company also had around USD 9.4 billion in cash and cash equivalents and short-term investments (GameStop, 03.05.2026). This war chest could help to make the step that has now been announced possible.

For eBay, on the other hand, the situation is mixed. The online auction house founded by Pierre Omidyar in 1995 has lost ground in recent years: the gross merchandise volume fell from a peak of around 100 billion US dollars in 2020 to 79.6 billion in the 2025 financial year (CNBC, 03.05.2026). The number of active buyers also fell from 175 million in 2018 to around 136 million recently (BBC, 05.05.2026). CEO Jamie Iannone is trying to counteract this with a focus on collectibles, second-hand luxury fashion and car parts as well as the increased use of artificial intelligence; in February, the acquisition of the second-hand app Depop from Etsy for around USD 1.2 billion was also announced (Guardian, 04.05.2026). In the first quarter of 2026, revenue was slightly above consensus estimates at USD 3.09 billion (CNBC, 03.05.2026).

Specifically, Gamestop is offering USD 125 per share, half in cash and half in treasury shares. This corresponds to a total value of around USD 55.5 billion and a premium of 46 Prozent compared to the closing price on February 4, 2026, the date on which GameStop began building up its stake according to the media release (GameStop, May 3, 2026). Based on the last closing price before the announcement, the premium is around 20 percent (FuW, 04.05.2026). According to GameStop, it currently holds a stake of around 5 percent in eBay, mainly via derivatives. The cash portion is to be financed from existing liquid funds and a financing commitment of up to 20 billion US dollars from the bank TD Securities (GameStop, 03.05.2026).

In terms of content, GameStop justifies the offer with a targeted savings potential of USD 2 billion per year, which is to be realized within twelve months of completion. According to Cohen, the background to this is that eBay spent around 2.4 billion US dollars on marketing in 2025, but only gained around one million additional active buyers (CNBC, 03.05.2026). The approximately 1600 GameStop stores are also to be integrated into eBay's model as a physical network for authentication, logistics and so-called "live commerce" (Guardian, 04.05.2026).

The stock market reacted cautiously. eBay shares rose on Monday, but remained below the offer price at around USD 110 (TradingView, 04.05.2026). This could be an indication that investors are not firmly expecting a deal in the proposed form (CNBC, 03.05.2026). Meanwhile, Gamestop shares lost around 5 percent following the announcement (FuW, 04.05.2026). Investor Michael Burry, who became known for his bets against the US mortgage market, also expressed skepticism and, according to his own statements, is considering partially or completely reducing his GameStop stake (FuW, 04.05.2026).

eBay has confirmed receipt of the offer and stated that it is reviewing it together with its financial advisors. If the Board of Directors rejects the offer, Cohen has announced that he will approach the shareholders directly - if necessary via a proxy fight. Whether the transaction goes ahead in the proposed form could depend on whether banks and external investors are prepared to support a deal of this size.