Key Highlights
- GameStop expanded its eBay exposure from approximately 22.2 million shares to roughly 29.1 million shares through derivative-based put/call options
- The holding now represents approximately 6.55% of eBay’s total outstanding shares, climbing from 5.0%
- Option strike prices span a range between $84.74 and $114.96
- Ryan Cohen, GameStop’s CEO, earlier proposed a $56 billion takeover bid for eBay that was turned down
- GME shares have climbed 10% this year, while EBAY has surged 31%
GameStop (GME) has been methodically assembling one of the more unconventional stakes on Wall Street — and the position continues to expand.
Through an updated 13D filing released Tuesday, GameStop revealed it has elevated its economic stake in eBay (EBAY) to roughly 29.1 million shares, a notable increase from the approximately 22.2 million shares reported in its May 4 filing.
Combining this with 25,000 shares held directly, GameStop’s aggregate position now accounts for approximately 6.55% of eBay’s total outstanding equity. This marks a significant jump from the roughly 5.0% stake disclosed just weeks earlier.
The stake is constructed through derivative-linked put/call option arrangements rather than traditional share ownership. These paired options feature strike prices spanning from $84.74 to $114.96 per share.
A particularly important detail from the filing: should GameStop opt for physical settlement of these options, it would acquire sole voting authority over the shares in question. That’s hardly a passive investment strategy.
Cohen’s Aggressive eBay Campaign
This positioning stems directly from GameStop CEO Ryan Cohen’s campaign, which bears all the hallmarks of classic shareholder activism directed at eBay.
Earlier in the year, GameStop put forward an acquisition proposal for eBay with a reported valuation approaching $56 billion. eBay’s board swiftly declined, dismissing the proposal as “neither credible nor attractive.”
Cohen’s response has been anything but retreat. During a recent conversation with Anthony Pompliano, he launched pointed criticism at eBay’s operational efficiency, suggesting the company “needs to be on Ozempic” due to becoming “obese to an unhealthy degree.”
He indicated his expectation that eBay’s board and executive team would fight his efforts, primarily because he would pursue significant leadership overhauls if he secured control. The messaging couldn’t be clearer.
Cohen has consistently highlighted what he perceives as excessive operational bloat at eBay — and Tuesday’s regulatory filing demonstrates he’s continuing to build his stake while that public debate unfolds.
Stock Performance Comparison
Interestingly, eBay shares have significantly outperformed GameStop throughout the current year. EBAY has rallied 31% year-to-date, while GME has posted a more modest 10% gain during the same timeframe.
GameStop trades at a price-to-earnings multiple of 29.47x, suggesting investor optimism about future prospects. 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 tilted heavily toward selling. Throughout the most recent three-month period, company insiders have sold approximately $400,000 in shares without any documented purchases.
GME’s GF Score registers at 51 out of 100, reflecting weak profitability metrics (4/10) and growth indicators (1/10), alongside a moderate financial strength assessment of 5/10.
According to Tuesday’s regulatory disclosure, GameStop’s comprehensive eBay exposure encompasses approximately 29.1 million derivative-linked shares alongside 25,000 directly held shares, yielding a total economic interest of roughly 6.55% of eBay’s outstanding equity.
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