Short Thoughts May 2, 2026
GameStop's Play for eBay
As Berkshire Hathaway shareholders descend on Omaha for the company’s first annual meeting without Warren Buffett, the WSJ reports that GameStop is preparing a bid for eBay. Citing anonymous people close to the matter, the Journal also reported that GameStop has been acquiring eBay shares in the market in preparation for the offer:
GameStop is preparing to make an offer for eBay, according to people familiar with the matter, part of CEO Ryan Cohen’s audacious plan to turn the retailer into a $100-billion plus juggernaut.
GameStop, which had a market value of around $11 billion as of Friday’s close, has been quietly building a stake in eBay’s shares ahead of a potential offer, the people said. eBay is several times GameStop’s size, with a market value around $45 billion as of Friday’s close.
eBay’s shares jumped over 10% after-hours Friday after The Wall Street Journal reported on GameStop’s plans, while GameStop’s rose around 5%.
GameStop could submit an offer for eBay as soon as later this month, the people said, assuming the retailer proceeds as planned.
If eBay isn’t receptive, Cohen could decide to take the offer directly to eBay’s shareholders, one of the people added. Details of the potential offer for eBay couldn’t be learned.
In the first days of February, Ryan scheduled then cancelled a TV appearance with Fox Business host Charles Payne regarding a potential deal, Payne reported at the time, “Ryan is working on something monumental.”
Three full months later, I would be surprised if GameStop did not already own 4.99% of eBay.
Neither GameStop nor eBay have made an announcement at this writing.
I have written extensively on GameStop. First, my history with the stock in The Big Short Squeeze on December 15th then the current state of the company in Final Stop GameStop on January 26th.
Finally, in a Short Thoughts piece February 2nd of this year, I proposed a hypothetical strategy for GameStop to acquire three companies – Wayfair, ADT and Assured Guaranty – using creative financing and timing to pay for each.