GameStop (GME) on Solana

GameStop shares fell to a two-year low of $18.33 after the company exchanged roughly $1.4 billion of senior convertible notes for common stock. While the debt-for-equity swap eliminates that debt burden and associated interest costs, it substantially dilutes existing shareholders' ownership stakes — a trade-off the market greeted with selling pressure.

Adding to the uncertainty, reports indicate CEO Ryan Cohen is reconsidering the previously proposed $56 billion eBay acquisition, potentially replacing it with a joint venture arrangement. The strategic ambiguity around GME's growth direction has weighed on sentiment even as some retail investors moved to a "bullish" stance, treating the dip as a buying opportunity. Year-to-date, the stock has declined between 7% and 41% depending on the metric used.

GameStop CEO Ryan Cohen is pulling back from the company's proposed $56 billion takeover of eBay, reportedly reconsidering full acquisition in favor of a partnership or joint venture structure instead. Under the revised approach, GameStop would seek to leverage its physical retail footprint to expand eBay's marketplace reach — potentially through shared logistics, in-store order pickup, or co-branded services — while pursuing board representation at eBay rather than outright control.

The pivot follows GameStop's recent completion of a $1.4 billion debt-for-equity swap and signals a more capital-efficient strategy for Cohen, who appears unwilling to commit to a transaction of that scale. By repositioning its store network as a logistics and customer-traffic asset for marketplace integration, GameStop is signaling it sees its brick-and-mortar presence as a negotiating chip rather than a liability — a notable shift in how the company frames its retail footprint in the post-meme-stock era.

Michael Burry, the investor made famous by the 2008 mortgage short trade, has reiterated his opposition to GameStop's growing stake in eBay, maintaining that the strategy is unlikely to benefit shareholders. Burry exited his GME position in May and argues that building a significant eBay holding departs from the disciplined, balance-sheet-focused acquisition approach that underpinned his original thesis for the stock. In his words, the eBay direction represents "the wrong strategy" for GME shareholders — a position he has not softened despite GameStop's tactical adjustments.

Despite moves by management to address investor concerns — including CEO Ryan Cohen abandoning performance-based compensation, shareholder approval to expand authorized shares, and raising the eBay stake to 9.8% using existing cash rather than debt — Burry's fundamental objection remains unchanged. His continued absence from the stock signals persistent skepticism from one of GME's most prominent former backers, underscoring tension between GameStop's pivot toward a holding-company model and the shareholder-return discipline that originally attracted value-oriented investors to the name. GME shares are up roughly 9% year-to-date.

Regulatory filings disclosed late Friday show GameStop now holds a 9.8% stake in eBay, comprising 43.4 million shares. The position was assembled through two steps: direct purchases of 3.5 million shares for roughly $381 million last month, and the settlement of 39 million shares from put/call derivative pairs. The disclosure formalizes what CEO Ryan Cohen had described in early May as a "5% economic stake" held through derivatives and beneficial ownership.

eBay's board rejected GameStop's unsolicited $56 billion acquisition proposal in May, calling it "neither credible nor attractive." Cohen responded by pledging $500 million of his own capital to the transaction and securing a $20 billion non-binding debt commitment from TD Securities, and publicly stated the company is "coming for eBay one way or another." The SEC filing converts that intent into a substantial, on-record ownership position just below the 10% threshold that typically triggers additional regulatory scrutiny.

GameStop CEO Ryan Cohen shrugged off Sony's decision to phase out physical PlayStation discs, telling Bloomberg it "doesn't matter at all — it is totally, totally irrelevant." The dismissal underscores how far GameStop has drifted from its roots as a video-game retailer: physical and digital game sales now account for just 18% of company revenue, while collectibles have surged to 41%, making them the largest single revenue segment.

Cohen's strategic attention has shifted firmly toward e-commerce, most visibly through GameStop's pursuit of an eBay acquisition valued at roughly $56 billion. Even in conversations about high-profile upcoming releases such as GTA 6, Cohen reportedly redirected focus back to the eBay bid rather than game-sales prospects. The pivot signals that GameStop's long-term identity is being rebuilt around collectibles and marketplace commerce rather than the physical-media business that originally defined the chain.

Uber Eats has added GameStop to its retail delivery platform, giving U.S. customers on-demand and scheduled access to video games, consoles, accessories, collectibles, and electronics from GameStop locations nationwide. Uber's North America grocery and retail head Hashim Amin described the move as strengthening the company's gaming and electronics selection, allowing shoppers to reach "another trusted retailer" with the speed and convenience the platform already offers for groceries and other goods.

The partnership is part of Uber Eats' broader push to expand its retail footprint beyond food delivery, following a similar arrangement with Ulta Beauty in May 2026. GameStop joins thousands of retailers already listed on the platform spanning categories including home improvement, beauty, and pet products.

GameStop is continuing to pursue a takeover of eBay despite the marketplace platform's initial rejection of the approach as "neither credible nor attractive." CEO Ryan Cohen has withdrawn a controversial performance award to demonstrate shareholder alignment and keep focus on the eBay negotiations, with the company raising its financial targets to underscore the strategic importance of expanding into online commerce beyond its legacy video game retail footprint.

Analyst attention on GME has picked up amid the persistence, with price targets climbing alongside the stock's roughly 10.7% year-to-date gain to around $22.82 per share. GameStop frames the eBay pursuit as central to repositioning the company as a broader marketplace operator, though execution risks — including financing, regulatory review, and integration — remain the primary investor concern if a deal were to progress.

eBay's board has formally rejected a non-binding acquisition proposal from GameStop, dismissing the approach as "neither credible nor attractive." The offer, which reportedly included a mix of cash and GameStop equity, was rebuffed as eBay's management opted to maintain its independent course. The rejection arrives amid broader activist pressure on eBay and follows a shareholder vote that failed to loosen rules for convening special meetings.

The failed bid underscores GameStop CEO Ryan Cohen's ambition to pivot the company beyond its retail gaming roots by acquiring established marketplace infrastructure. Cohen had previously foregone a $35 billion performance pay plan to focus on pursuing the eBay deal. eBay's recommerce capabilities, extensive seller base, and buyer network across consumer electronics and collectibles appeared to be the strategic rationale — categories that overlap with GameStop's existing business. With eBay's board closing the door, attention now turns to what acquisition target, if any, Cohen pursues next as GameStop continues to deploy its substantial cash reserves.

GameStop raised its FY26 EBITDA guidance to exceed $600 million, nearly double the $345.4 million the company generated in FY25. The upgraded outlook came alongside strong Q1 FY26 results: net profit of $389.6 million for the quarter ending May 2, 2026, compared to $44.8 million in the prior-year period — marking eight consecutive quarters of profitability. GME shares rose roughly 2% in after-hours trading on the news.

The earnings momentum underscores a significant operational turnaround from GameStop's loss-making retail era. Management indicated the leadership team remains focused on its proposed acquisition of eBay, where CEO Ryan Cohen recently declined a major performance-based pay package to prioritize the bid. GameStop had made an unsolicited $125-per-share cash-and-stock offer for eBay earlier this year, which eBay's board rejected, though GameStop has continued building its economic stake in the company.

GameStop CEO Ryan Cohen will forgo a potential performance-based compensation award valued at roughly $35 billion, the company said, according to Yahoo Finance. GameStop disclosed the package in January, structuring it around demanding milestones that would require Cohen to lift the retailer's market value more than tenfold and sharply increase its profit. Cohen said he declined the award so that GameStop's leadership could focus fully on the company's operating performance and its planned acquisition.

That acquisition centers on Cohen's bid to take over eBay. GameStop made an unsolicited offer worth roughly $56 billion in cash and stock in May, aiming to build the e-commerce platform into a stronger rival to Amazon, but eBay's board rejected the proposal as "neither credible nor attractive." With GameStop's own market value near $10 billion against a target several times larger, questions over financing remain. The company said it would release additional materials on the proposed deal this week, including a detailed strategic rationale and operational plan for the combined business.