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Hand holding a smartphone displaying the eBay logo in front of a GameStop website
Photo: TipRanks

GameStop Stock Rises 5% as Cohen Escalates Hostile Bid for eBay

GameStop Corp. Investor Relations2 min read6 sources

Why is GameStop stock rising?

GameStop (GME) stock rose 5% to $21.44 after CEO Ryan Cohen bought $20.4 million in shares on Thursday, signaling escalation toward a hostile tender offer for eBay.

Key numbers

eBay Bid Price$125/share+46% over Feb 4 unaffected close
Total Deal Size$56B50% cash, 50% GME stock
GME Share Buyback$2Bboard-authorized, through June 2029
GME Q1 FY2026 Net Income$389.6Mrecord high; up from $168.6M Q2 [3]
GameStop Stake in eBay9.8%~43.4M shares + options on 39M more
Cohen Insider Buy$20.4M1M shares at $20.38 avg, Sep 10

What happened

GameStop (GME) stock rose 5% to $21.44 after CEO Ryan Cohen bought $20.4 million in shares on Thursday, signaling escalation toward a hostile tender offer for eBay. Cohen purchased one million shares at an average of $20.38 each on September 10, lifting his beneficial ownership to about 8.5% of the company and reaffirming his commitment after briefly weighing pulling the deal in August. eBay shareholders had earlier voted down a governance proposal on June 19 that would have lowered the threshold to call a special shareholder meeting — Cohen's last shortcut to force a board vote without filing a full hostile offer. GameStop now holds a 9.8% stake in eBay and has $20 billion in bridge financing from TD Bank lined up to fund the $56 billion, $125-per-share bid.

Why it matters

GameStop's dual-track campaign — a $56 billion hostile bid backed by a $2 billion share buyback — is the most aggressive corporate push from a company of GameStop's size in years. A formal tender offer would let eBay shareholders accept the $125 bid directly, bypassing the board's rejection entirely; eBay stock currently trades at $108, a 14% discount to the offer price. For everyday investors, a successful deal would close that gap sharply, while a collapse would strip away the bid premium and likely push eBay stock significantly lower.

Who this affects

Marketbullish
High impact
eBay stock sits 14% below the $125 bid price.
Companymixed
High impact
GameStop presses eBay's board with an imminent hostile offer.
Competitorsbearish
Medium impact
Etsy and marketplace rivals face a stronger eBay if deal closes.
Industrymixed
Medium impact
Retail-marketplace combo could reshape secondhand e-commerce dynamics.

GameStop vs eBay, Etsy

GameStopGME$10.8B-0.8%+2%—
eBayEBAY$48.1B-0.9%+26%21.7x
EtsyETSY$7.0B—+38%24.2x

As of 2026-09-16

How we got here

  1. GameStop discloses 5% eBay stake; unaffected share price ~$85.62

  2. GameStop proposes $125/share, $56B bid; GME jumps 9% on announcement

  3. eBay board rejects bid as 'neither credible nor attractive'

  4. eBay Proposal 4 fails 210M-to-157M; governance shortcut for Cohen closed

  5. Cohen buys 1M GME shares at $20.38 avg, signaling hostile tender escalation

What to watch

  • Formal hostile tender offer SEC filing could bypass eBay's board entirelyQ4 2026
  • eBay Q3 earnings may pressure the board toward $125-bid talksQ4 2026
  • $20B TD Bank bridge loan confirmation locks deal financing in placeQ4 2026

Educational content only. Not investment advice.

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