GameStop (GME) Expands eBay (EBAY) Stake to 6.55% Amid Cohen’s Activist Push

Key Highlights

• GameStop has expanded its eBay economic interest from approximately 22.2M shares to roughly 29.1M shares through derivative-linked option strategies
• The expanded stake represents approximately 6.55% of eBay’s total outstanding shares, climbing from the previous 5.0%
• Option contracts carry strike prices spanning $84.74 through $114.96
• Ryan Cohen’s proposed $56B eBay acquisition was turned down by eBay’s board of directors
• GME shares have climbed 10% this year, while EBAY has surged 31%

GameStop (GME) continues assembling what has become one of the more intriguing corporate positions on Wall Street — and the latest filing reveals the stake has expanded significantly.

GameStop Corp., GME

According to an updated 13D filing submitted Tuesday, GameStop has grown its economic interest in eBay (EBAY) to roughly 29.1 million shares, representing a substantial increase from the approximately 22.2 million shares reported in its May 4 disclosure.

Combined with 25,000 shares of direct ownership, GameStop’s aggregate position now constitutes approximately 6.55% of eBay’s shares outstanding. This marks a notable jump from the 5.0% level registered just weeks earlier.

The position is structured through derivative-linked put and call option arrangements rather than conventional share ownership. Strike prices across these paired instruments span from $84.74 up to $114.96 per share.

An important provision in the filing: should these options be physically settled, GameStop would obtain exclusive voting authority over the corresponding shares. This clearly signals more than a passive investment strategy.

Cohen’s Campaign Against eBay

The roots of this position extend directly to GameStop CEO Ryan Cohen, who has been orchestrating what increasingly resembles a full-scale activist effort aimed at eBay.

Earlier in the year, GameStop put forward an acquisition proposal for eBay with an estimated valuation approaching $56 billion. eBay’s board swiftly dismissed the overture, characterizing the proposal as “neither credible nor attractive.”

Cohen’s response has been to double down. During a recent conversation with Anthony Pompliano, he delivered pointed criticism of eBay’s operational expenses, suggesting the company “needs to be on Ozempic” due to becoming “obese to an unhealthy degree.”

He acknowledged expecting strong resistance from eBay’s board and executive team, particularly since his vision involves substantial leadership restructuring if he were to secure control. The message was unmistakably direct.

Cohen has consistently highlighted what he perceives as excessive bloat within eBay’s operations — and Tuesday’s regulatory filing demonstrates he’s continuing to build his position even as this public confrontation unfolds.

Stock Performance Comparison

Interestingly, eBay has been the superior performer between the two stocks this year. EBAY shares have rallied 31% year-to-date, compared to GME’s 10% gain during the identical timeframe.

GameStop trades at a price-to-earnings multiple of 29.47x, suggesting market participants anticipate future growth. However, the company’s operational metrics paint a more challenging picture — revenues have contracted 30.3% across the last three years.

Insider trading patterns at GameStop have leaned heavily toward sales. Throughout the past three months, company insiders have sold approximately $400,000 in shares, with zero reported insider purchases to offset this activity.

GME receives a GF Score of 51 out of 100, reflecting weak profitability metrics (4/10) and growth indicators (1/10), alongside a moderate financial strength assessment of 5/10.

Based on Tuesday’s regulatory disclosure, GameStop’s comprehensive eBay exposure consists of approximately 29.1 million derivative-linked shares plus 25,000 shares held directly, yielding a total economic stake of roughly 6.55% in eBay’s outstanding common stock.

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