GameStop (GME) Stock: Shareholders Approve Share Increase to Fund eBay Acquisition Bid

TLDR

• GameStop shareholders approved increasing authorized common stock to 2.5 billion, with 68.7% of votes cast in favor.
• The move gives GameStop room to issue stock as part of its proposed $56 billion acquisition of eBay.
• eBay rejected GameStop’s original unsolicited offer in May, but GameStop has since raised its stake in the company.
• GameStop directly owns over 4.3 million eBay shares and has options exposure to a further 39 million shares, expiring February 2028.
• GME stock is trading around $22.20, up roughly 10.6% year-to-date.

GameStop’s shareholders have cleared one more hurdle in the company’s pursuit of eBay. At its 2026 Annual Meeting on Tuesday, stockholders approved a change to GameStop’s certificate of incorporation that raises the number of authorized Class A common shares to 2.5 billion.

The vote passed with 68.7% of votes cast, giving the company the firepower to issue stock as part of a deal.

GameStop is trading at around $22.20 per share, with a market cap of roughly $9.94 billion. eBay, the target of its acquisition push, carries a market cap of around $50 billion — making this a genuine David-and-Goliath situation.

GameStop Corp., GME

In May, GameStop made an unsolicited, non-binding offer to acquire all outstanding eBay stock it didn’t already own at $125 per share — a mix of cash and GameStop stock — valuing the deal at $56 billion. eBay’s board rejected it, calling the offer “neither credible nor attractive.”

That hasn’t stopped CEO Ryan Cohen. He has since gone on record saying he plans to take the offer directly to eBay shareholders, bypassing the board.

GameStop currently owns 4,343,725 eBay shares outright and has put/call option transactions giving it economic exposure to another 39,046,658 shares. Those options don’t expire until February 23, 2028, so GME isn’t in a rush.

In June, GameStop satisfied the Hart-Scott-Rodino antitrust condition, meaning the company could physically settle the shares underlying those options rather than settling in cash — a step that quietly strengthened its position.

A Business That’s Actually Turning Around

While the eBay drama grabs headlines, GameStop’s core numbers have been improving. In Q1, the company posted adjusted EPS of $0.30, well ahead of the $0.12 consensus. Revenue hit $835.3 million, up 14% year-over-year and ahead of the $766.64 million estimate.

Net income came in at a record $389.6 million. Collectibles were called out as a key driver.

The board also approved a $2 billion share-buyback plan last month, and Cohen pulled a potentially large performance award from the proxy statement, saying he wants management focused on operations and the eBay bid.

What Analysts Think

Analysts have been skeptical about the math behind a $56 billion offer from a company with a $10 billion market cap. GameStop’s stock is currently trading above InvestingPro’s Fair Value estimate, landing it on an “overvalued” watchlist — a detail eBay shareholders would likely factor in when weighing a deal that involves GameStop stock as consideration.

The proposed transaction still has no definitive agreement in place, and GameStop has not been given access to eBay’s books and records.

GME stock finished Tuesday’s regular session down 2.46%, though it edged fractionally higher in after-hours trading following the shareholder vote announcement.

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