GameStop Holds Nearly 10% of eBay, CEO Calls Physical Games 'Irrelevant'

GameStop now owns nearly 10% of eBay after converting financial contracts into common shares, a regulatory filing revealed on Friday. The videogame retailer holds 43.39 million eBay shares, equivalent to a 9.8% stake, signaling CEO Ryan Cohen's determination to pursue a takeover despite eBay's rejection of his $56 billion offer in May. Source: CNA

The eBay stake

Cohen's stake has nearly doubled since early May, when he disclosed a 5% economic interest through derivatives. GameStop turned those derivatives into shares over recent weeks, including buying 3.5 million shares for $381 million and settling 39 million shares from put/call pairs. Source: Ground News In a separate filing, Cohen stated, "I'm not going to call my shots, but we're coming for eBay one way or another." Source: CNA

Dismissing physical games

In a Bloomberg TV interview, Cohen dismissed Sony's plan to end physical disc production in 2028 as "totally, totally irrelevant," arguing that software accounts for less than 12% of GameStop's business. Source: Tom's Hardware However, GameStop's own filings show software at 20.1% of FY2025 net sales, though that share is declining—down 27% year-over-year. Source: Tom's Hardware Collectibles now make up 29% of revenue, growing 47% annually. Source: The Next Web

What's next

Cohen remains committed to the eBay acquisition, claiming a combined company could be "a $1 trillion business." Source: The Next Web He noted that GameStop has a "highly confident" letter from TD Securities for up to $20 billion in debt financing, though the deal remains contingent on an investment-grade credit rating. eBay's board has shown no interest, and Cohen has not increased his offer.