Key Takeaways
- GameStop investors voted to expand authorized common stock to 2.5 billion shares, with nearly 69% approval.
- The authorization provides GameStop flexibility to use equity in its $56 billion eBay takeover proposal.
- eBay’s board previously dismissed GameStop’s unsolicited bid submitted in May.
- GameStop holds more than 4.3 million eBay shares outright and controls options on an additional 39 million shares through February 2028.
- GME shares are currently priced near $22.20, reflecting a year-to-date gain of approximately 10.6%.
GameStop investors have handed CEO Ryan Cohen another tool in his ambitious campaign to acquire eBay. During Tuesday’s 2026 Annual Meeting, shareholders voted to amend the company’s corporate charter, expanding authorized Class A common stock to 2.5 billion shares.
The measure secured 68.7% approval among votes cast, equipping GameStop with the ability to deploy additional shares as currency in a potential transaction.
With GameStop shares hovering around $22.20 and a market capitalization near $9.94 billion, the company is targeting eBay, which carries a valuation of approximately $50 billion — a classic underdog scenario.
Back in May, GameStop delivered an unsolicited proposal to purchase all eBay shares it didn’t already control for $125 each — structured as a combination of cash and GameStop equity — putting the total transaction value at $56 billion. eBay’s board swiftly declined, dismissing the proposal as “neither credible nor attractive.”
Yet Cohen remains undeterred. He has publicly stated his intention to circumvent eBay’s board and present the offer directly to eBay’s shareholder base.
GameStop presently holds 4,343,725 eBay shares directly and has structured put/call option agreements providing economic interest in another 39,046,658 shares. With those options not expiring until February 23, 2028, the company has considerable time to execute its strategy.
This past June, GameStop cleared the Hart-Scott-Rodino antitrust review requirement, enabling the company to physically settle those option contracts with actual shares instead of cash payments — a tactical move that bolstered its positioning.
Operational Performance Shows Momentum
While the eBay acquisition saga dominates attention, GameStop’s underlying business metrics have been gaining traction. First-quarter results revealed adjusted earnings per share of $0.30, significantly surpassing the $0.12 analyst consensus. Revenue reached $835.3 million, marking a 14% year-over-year increase and exceeding the $766.64 million forecast.
Net income achieved a record $389.6 million. Management highlighted collectibles as a significant growth catalyst.
The board additionally authorized a $2 billion stock repurchase program last month. Cohen also withdrew a substantial performance-based compensation award from proxy materials, emphasizing his desire for leadership to concentrate on operational execution and the eBay pursuit.
Wall Street’s Perspective
Analysts have expressed doubt about the feasibility of a $56 billion acquisition bid from a company valued at $10 billion. GameStop’s current stock price exceeds InvestingPro’s Fair Value calculation, placing it on an “overvalued” monitoring list — a consideration that would likely influence eBay shareholders evaluating a transaction involving GameStop equity.
No binding agreement exists for the proposed acquisition, and GameStop has not received access to conduct due diligence on eBay’s financial records.
GME shares closed Tuesday’s regular trading session down 2.46%, though the stock climbed slightly in after-hours activity following news of the shareholder vote outcome.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
