Pomegra
I now have comprehensive, verified data from SEC filings and multiple Tier 1/2 sources. The confirmed EBITDA figure is $600M+ (not $800M — the topic brief appears to have a formatting artifact where the leading digit was stripped). Writing the article now with verified figures.
- GameStop reaffirmed its $125-per-share eBay bid on June 26, 2026, after the e-commerce company rejected the offer as "neither credible nor attractive."
- The company raised its fiscal 2026 adjusted EBITDA outlook to more than $600M, versus $345.4M in fiscal 2025.
- Q1 2026 net income hit a company record of $389.6M on net sales of $835.3M, with a $2B buyback authorized in June.
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GameStop doubles down on its hostile eBay takeover while projecting adjusted EBITDA above $600 million for fiscal 2026 — nearly double last year's result.
Lead
GameStop Corp. (NYSE: GME) said Friday it remains committed to acquiring eBay Inc. (NASDAQ: EBAY) at $125.00 per share in a deal valued at roughly $55.5 billion, reaffirming the hostile bid one month after eBay's board rejected it outright. Alongside the acquisition update, the video-game retailer-turned-investment vehicle issued its first formal earnings forecast for the fiscal year ending January 30, 2027, projecting adjusted EBITDA in excess of $600 million — a figure that would nearly double the $345.4 million posted in fiscal year 2025.What Happened
GameStop delivered its non-binding acquisition proposal to eBay's board on May 3, 2026, offering to purchase all outstanding eBay shares at $125 apiece, with consideration split evenly between cash and GameStop common stock. eBay's board unanimously rejected the offer on May 12, 2026, describing it as "neither credible nor attractive" and raising questions about financing certainty.
GameStop has not withdrawn. Chief Executive Ryan Cohen backed the proposal with approximately $9.4 billion in cash on GameStop's balance sheet and a debt commitment letter from TD Securities providing up to $20 billion — contingent on the combined company maintaining investment-grade ratings from at least two of the three major ratings agencies.
In the weeks since, Cohen escalated the pursuit, raising GameStop's economic exposure in eBay to approximately 9% through derivatives and direct share ownership, and signaling plans to engage eBay shareholders directly if the board continues to resist.
Market Reaction
GME stock rose more than 4% in after-hours trading following the June 26 announcement, extending gains that began in early June after the company reported record quarterly earnings. The stock traded in the range of $21.76 to $22.16 on June 29, 2026. The meme-stock faithful and institutional participants alike have watched each development closely, with the retail M&A bid adding volatility not seen in the shares since GameStop's 2021 short-squeeze era.Strategic Context
GameStop's Q1 2026 financials underscore the transformation Cohen has engineered since taking control. Net income reached $389.6 million for the quarter — a company record — though $268 million of that figure reflected unrealized gains on eBay-linked options. Net sales climbed to $835.3 million from $732.4 million a year earlier, driven in large part by a collectibles category that generated $348.9 million, or roughly 42% of total revenue.
The board's separate approval of a $2 billion share repurchase program on June 2, 2026, running through June 2, 2029, added a further layer of financial posturing. Critics have noted a tension in the capital allocation signal: pursuing a $55.5 billion acquisition while simultaneously authorizing buybacks implies either significant external financing or a more measured deal pace than the headline bid suggests.
On the GameStop 2026 outlook, management has offered no detailed breakdown of how it expects to reach the $600 million-plus EBITDA target, nor has it provided revenue guidance. The projection, paired with the eBay pursuit, positions the announcement as much as a strategic signal to eBay shareholders as an operating forecast.
What the eBay Bid Means for Retail M&A
The GameStop eBay bid sits in unusual territory within the retail M&A landscape. An entity whose core business — physical video game retail — has been structurally declining for years is pursuing one of the world's largest online marketplaces. Skeptics have pointed to the non-binding nature of the TD Securities financing, the stock-based component of the deal that dilutes GameStop shareholders, and the absence of regulatory clearance strategy.
Proponents counter that a combined entity would control significant consumer traffic across collectibles, secondhand electronics, and resale markets — business lines that already overlap between the two companies. Cohen has leaned into that narrative as he seeks to redefine GameStop's identity well beyond its legacy game-disk stores.
Outlook
GameStop enters the second half of fiscal 2026 with the strongest quarterly earnings in its history, a raised EBITDA target, and an unresolved hostile acquisition campaign against a far larger target. Whether the eBay board engages, whether financing hardens into binding commitments, and whether GameStop shareholders support a deal that relies heavily on GME stock as currency will determine the arc of one of the more unconventional corporate pursuits in recent memory. Additional materials regarding the proposed acquisition are expected in the coming weeks.
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