GameStop’s eBay Acquisition Plan Faces Warrant Expiration Deadline
GameStop (NYSE:GME) disclosed in its Q2 FY27 filing that it holds a significant $4.9 billion stake in eBay (NASDAQ:EBAY), and has proposed an acquisition of the online marketplace giant. However, with GameStop’s stock trading at $22.76—well below the $32 strike price on 59 million warrants—the potential for raising up to $1.9 billion through warrant exercises is under threat as they expire October 30. The company reported strong operating income growth of 141% and a gross margin expansion from 29% to 44%, but its cash reserves fell by 42% year-over-year to $4.85 billion, raising questions about funding the acquisition without exercising warrants or securing additional financing. GameStop’s CEO Ryan Cohen did not hold an earnings call or provide guidance following the release of results. The company also disclosed outstanding convertible debt totaling approximately $2.8 billion and highlighted eBay as a major concentration risk in its investment portfolio.
