GameStop has nearly doubled its stake in eBay as chief executive Ryan Cohen presses ahead with his pursuit.
The video game retailer now owns 43.4 million eBay shares, representing 9.8 per cent of the company, according to a US regulatory filing.
It marks a sharp increase from the five per cent economic interest GameStop disclosed in May when Cohen submitted an unsolicited cash-and-shares offer valuing eBay at about £42 billion.
The retailer bought 3.5 million eBay shares for approximately £283 million between June 8 and June 15. It then converted options covering a further 39 million shares into stock, using cash from its working capital.
Cohen has reportedly reorganised his advisory team and is speaking with major eBay shareholders as he considers taking the proposal directly to investors.
eBay rejected the £93-a-share offer in May, calling it “neither credible nor attractive” and raising concerns about the financing, strategic rationale and risks of combining the two businesses.
The proposal offers shareholders an equal split of cash and GameStop stock. Cohen has also committed approximately £372 million of his own money and plans to lead the combined company.
GameStop’s proposed financing includes a non-binding loan commitment worth about £14.9 billion from TD Securities, which is dependent on the enlarged group achieving an investment-grade credit rating.
Analysts have questioned whether the smaller video game retailer can fund and execute the acquisition. GameStop has a market value of roughly £7.4 billion compared with eBay’s near-£37 billion valuation.
Cohen argues that combining the businesses would create a stronger competitor to Amazon and has promised to cut £1.5 billion from eBay’s annual costs within a year of completing the deal.
However, eBay’s market value has almost tripled since Jamie Lannone became chief executive in 2020, supported by its push into higher-growth categories including collectibles.
The business declined to comment on GameStop’s increased stake or Cohen’s continuing takeover effort.
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