Pomegra
GameStop reaffirms its $55.5 billion eBay bid and raises fiscal 2026 adjusted EBITDA guidance above $600 million, nearly doubling the prior year's result.
- GameStop EBITDA for fiscal 2026 is projected to exceed $600 million, up from $345.4 million in FY2025 — a year-over-year increase of more than 73%.
- GameStop's eBay bid of $125 per share stands despite eBay's board rejecting the unsolicited proposal in May as "neither credible nor attractive."
- GME stock rose approximately 2% in after-hours trading and advanced 1.4% in pre-market to $22.07 following the dual announcement.
Lead
GameStop (NYSE: GME) on June 26, 2026, reaffirmed its non-binding proposal to acquire eBay (NASDAQ: EBAY) at $125 per share — valuing the e-commerce platform's equity at roughly $55.5 billion — while simultaneously raising its fiscal 2026 adjusted EBITDA guidance to more than $600 million. The twin disclosures marked an escalation in one of the most closely watched retail M&A contests of the year and underscored Chief Executive Ryan Cohen's intent to press a transaction that eBay's board had publicly dismissed weeks earlier.What Happened
A short Form 8-K filed by GameStop on June 26 confirmed the company's continued commitment to the acquisition proposal first submitted to eBay's board on May 3, 2026, with further documentation to follow in the coming days. That original proposal called for eBay shareholders to receive $125 per share, split evenly between cash and GameStop stock, representing a 46% premium to eBay's unaffected closing price on February 4, 2026 — the day GameStop began accumulating its position. eBay's board formally rejected the offer on May 12, citing concerns about financing, governance, and deal structure.
In the weeks since, GameStop has steadily expanded its economic exposure in eBay. The company now holds approximately 9.8% of eBay through direct share ownership and derivative instruments — including put and call arrangements tied to more than 34.5 million shares, with strike prices ranging from roughly $84.74 to $118.28 per share. The antitrust waiting period connected to those instruments was satisfied on June 3, 2026.
Financial Backdrop
The GME stock outlook has strengthened materially in parallel with the deal pursuit. GameStop raised its fiscal year 2026 guidance — covering the period ending January 30, 2027 — projecting GameStop EBITDA in excess of $600 million on an adjusted basis, compared with $345.4 million in fiscal 2025, a year-over-year gain of more than 73%.
Those figures build on a record first-quarter performance. GameStop reported Q1 net income of $389.6 million — the highest in company history — though $268 million of that total reflected an unrealized gain on eBay-linked options. Adjusted net income came in at $179.3 million. The company closed the quarter with $9.7 billion in total liquidity, including $8.4 billion in cash and equivalents, up from $6.4 billion a year earlier. GameStop's board also authorized a $2 billion share repurchase program on June 2, 2026, replacing a prior authorization from March 2019.
Market Reaction
GME stock rose approximately 2% in after-hours trading following the June 26 filing, then advanced 1.4% in pre-market activity to $22.07. The session added to a roughly 10% single-day gain recorded earlier in the month when Q1 earnings and the buyback authorization were disclosed. EBAY shares have remained elevated relative to pre-bid levels as market participants weigh the probability of an eventual negotiated outcome.Strategic Context
The campaign represents an unconventional chapter in retail M&A: a company best known for video-game retail pursuing one of the internet's most established resale platforms. Cohen has framed eBay's second-hand commerce infrastructure as complementary to GameStop's collectibles and pre-owned goods business. eBay's board has questioned how a cash-and-stock structure would be financed without material dilution to GameStop shareholders and what operational rationale would govern the combined entity.
The escalating stake — now approaching 10% — increases Cohen's leverage in any future negotiation and signals the groundwork for a potential shareholder campaign if the board continues to resist.
Outlook
GameStop's dual signals — a stronger balance sheet and an unwavering posture on the GameStop eBay bid — position the company for a prolonged contest. With GameStop EBITDA guidance running more than 73% above fiscal 2025 levels and $9.7 billion in liquidity available, the financial credibility concerns eBay's board raised in May face renewed scrutiny. A follow-on regulatory filing, expected within days, is set to clarify whether GameStop plans to pursue a formal tender offer directly to eBay shareholders or continue building its position as a pressure tool.
Mentioned tickers: GME, EBAY
