GameStop (GME) Stock Rallies 4% as Cohen Doubles Down on eBay Acquisition Push

Key Takeaways

• GameStop has doubled down on its pursuit of eBay following the online marketplace’s dismissal of its approximately $56 billion combined cash-and-stock proposal
• The unsolicited offer was initially presented by CEO Ryan Cohen in May, with the rationale that a merged entity would pose stronger competition against Amazon
• The company indicated that “additional materials regarding the proposed transaction are forthcoming”
• GME shares finished Friday’s session up 3.57% at $21.76, followed by an additional 1.96% gain to $22.19 during after-hours activity
• The retailer anticipates adjusted EBITDA exceeding $600 million for fiscal 2026, representing substantial growth from the $345.4 million recorded in fiscal 2025

GameStop is refusing to walk away from its ambitious acquisition plans.

The video game specialty retailer submitted a regulatory disclosure on Friday reinforcing its determination to pursue eBay, despite the online auction platform’s previous rejection of the unsolicited proposal. GME shares ended Friday’s regular trading session with a 3.57% gain at $21.76, and continued climbing an additional 1.96% during extended trading hours to $22.19.

GameStop Corp., GME

The proposal, initially put forward in May by CEO Ryan Cohen, places eBay’s valuation at approximately $56 billion — representing a target roughly five times GameStop’s current market capitalization. eBay turned down the offer during the same month it was presented.

GameStop’s Friday regulatory submission was concise. The filing noted that the “leadership team remains focused on advancing the proposed acquisition of eBay” and confirmed that “additional materials regarding the proposed transaction are forthcoming.” Neither a specific timeline nor fresh details were disclosed.

Earlier in the week, GameStop had committed to releasing a comprehensive presentation outlining the strategic justification and operational blueprint for the potential merger. That promised presentation remains unreleased.

Cohen’s rationale has remained unwavering: combining both platforms would establish a more formidable competitor to Amazon. He has additionally indicated his intention to personally lead the merged organization.

eBay declined to provide comment when contacted on Friday.

Financial Performance and Projections

Alongside the acquisition status update, GameStop provided shareholders with its fiscal 2026 financial outlook. The organization forecasts adjusted EBITDA surpassing $600 million for fiscal 2026, representing nearly double the $345.4 million figure achieved in fiscal 2025.

Earlier this month, GameStop announced its most profitable quarterly performance on record — delivering net income of $389.6 million against revenue of $835.3 million, marking a 14% year-over-year improvement.

This financial momentum appears to support Cohen’s acquisition strategy. A more robust balance sheet provides GameStop with enhanced credibility when pursuing an acquisition target as substantial as eBay.

Nevertheless, prediction market platform Polymarket currently assigns just 16% probability to the deal’s completion, with potential shareholder dilution representing a primary concern among doubters.

Looking Ahead

GameStop has not yet published the comprehensive presentation it committed to delivering earlier this week.

The retailer has not clarified what structure a revised offer might assume, or whether it intends to bypass eBay’s board and appeal directly to eBay shareholders.

Currently, the regulatory submission represents the full extent of GameStop’s public stance — a clear declaration that the acquisition proposal remains under consideration, with additional information pending.

GameStop currently holds a 96th percentile ranking for Growth based on Benzinga Edge Rankings, notwithstanding negative performance across short, medium, and long-term investment horizons.

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