GameStop, the video game retailer turned activist investment vehicle under CEO Ryan Cohen, disclosed in a regulatory filing late on July 17, 2026 that it now owns 43.4 million shares of eBay equivalent to approximately 9.8% of the e-commerce company’s outstanding common stock. The disclosure, made through an amended Schedule 13D filing with the Securities and Exchange Commission, represents a dramatic acceleration of GameStop’s position since May, when Cohen told eBay’s board chairman the company had accumulated a 5% economic stake through derivatives and beneficial ownership. The latest filing shows two key transactions that drove the ownership spike.
Between June 8 and June 15, 2026, GameStop purchased 3,516,077 eBay common shares in the open market for a total consideration of approximately $381.3 million, including fees and expenses. Then, on July 17, 2026 itself, GameStop physically settled 39,046,658 eBay shares that had previously been held through a series of American-style put/call option pairs with an unaffiliated financial institution. The total consideration for the settled shares was approximately $3.97 billion at an aggregated final strike price of $101.30 per share. All purchases were funded entirely from cash in GameStop’s working capital, with no borrowings involved. GameStop now holds sole voting and dispositive power over all 43.4 million shares.
“Videogame retailer GameStop owns nearly 10% of e-commerce company eBay, the company said in a regulatory filing late on Friday, nearly three months after making an unsolicited offer to buy eBay for roughly $56 billion.”~Reuters
The $56 Billion Unsolicited Bid That Started It All:
Three months after GameStop made one of the most surprising business decisions in recent memory, the SEC filing was made. Ryan Cohen presented eBay’s board of directors with a non-binding proposal on May 3, 2026, offering to buy all outstanding eBay shares that GameStop did not already control at a price of $125 per share in cash and GameStop common stock. This purchase would have valued eBay at about $56 billion. The bid was turned down by eBay’s board.
Cohen is well known in markets for his earlier stake-building and board seat campaigns at Bed Bath & Beyond and his founding of Chewy, the online pet supplies retailer he built and sold to PetSmart for $3.35 billion in 2017. His transformation of GameStop from a struggling brick-and-mortar games retailer into a cash-rich activist vehicle has been the defining corporate story of the meme stock era. GameStop’s treasury, swelled by equity issuances during the 2021 short squeeze, has given Cohen an unusually large war chest to pursue acquisitions and eBay has become the primary target.
“BREAKING: GameStop now owns nearly 10% of eBay after settling $4 billion in put/call pairs. Ryan Cohen has spent over $4.3 billion total building eBay stake. GameStop made a $56 billion unsolicited bid for eBay in May — eBay rejected it. Cohen is not backing down.”~Mario Nawfal
eBay Rejected the Bid But a 9.8% Shareholder Is Hard to Ignore:
eBay denied GameStop’s May takeover deal and has not publicly commented on the most recent ownership disclosure. However, the dynamics of the scenario have evolved significantly as the put/call pairs have been settled. When GameStop retained its eBay exposure entirely through derivatives, the position was financially viable but did not come with formal shareholder rights on the same scale. With 43.4 million shares now directly owned, or 9.8% of outstanding stock, GameStop has sole voting and dispositive power over a block large enough to be highly important at eBay shareholder meetings. This offers Cohen leverage that the original derivatives position did not.
To put the investment in perspective, GameStop’s total investment in eBay shares and derivative premiums has now surpassed $4.3 billion, indicating that this is not a passive financial play, but rather an active campaign to force a transaction or strategic shift at eBay. The put/call combinations, which were previously cash-settled solely, were eligible for physical settlement when GameStop met Hart-Scott-Rodino antitrust filing criteria, a regulatory process that demonstrates the seriousness of the purchase plan.
“GameStop now owns nearly 10% of eBay after settling 39 million shares from put/call pairs. The video game retailer has spent over $4 billion building its eBay stake. GameStop made an unsolicited $56 billion offer for eBay in May that was rejected. Ryan Cohen shows no sign of backing off.”~CNBC
What Comes Next: Proxy Fight, Revised Bid or Escalation?
The 9.8% stake and the HSR antitrust clearance together set up a clear next phase. GameStop has stated in SEC filings that further information regarding participants in proxy solicitations will be contained in a definitive proxy statement for its own board and separately in any proxy statement or prospectus filed in connection with the proposed eBay transaction. That language suggests a formal proxy campaign aimed at eBay shareholders is a live option. Cohen could use the voting power of his 9.8% block to push for board seats, a strategic review, or a formal auction process at eBay.
A revised and higher offer than the original $125 per share is also possible, particularly if Cohen believes the current eBay share price gives him room to structure a deal that eBay’s board could not as easily reject. eBay’s market capitalisation and the premium implied by a revised bid will determine how much further GameStop’s war chest currently still significant despite the $4.3 billion deployed can realistically stretch. The meme stock retailer that was written off as a relic of physical gaming has spent three years building itself into an activist investment firm. The eBay campaign is the clearest proof yet of what that transformation actually means.
“GameStop $GME now owns 9.8% of eBay $EBAY after settling 39 million put/call pairs today. Total eBay stake now worth ~$4.7 billion. Ryan Cohen spent $4.3 billion to get here. For context, GameStop made an unsolicited $56 billion bid for eBay in May. eBay rejected it. This fight is not over.”~The Kobeissi Letter
