GameStop Ups its Stake in eBay to 10%, Pushes for a Deal

GameStop has nearly doubled its stake in eBay to 9.8 percent, escalating pressure on the online marketplace after its unsolicited takeover proposal was rebuffed earlier this year. According to a regulatory filing with the U.S. Securities and Exchange Commission, GameStop now owns 43.4 million eBay shares after significantly increasing its position over recent weeks. The retailer purchased 3.5 million shares before converting options covering a further 39 million shares into common stock. By acquiring close to the 10 percent ownership threshold, GameStop has positioned itself as one of eBay's largest shareholders, giving GameStop Chairman and CEO Ryan Cohen considerably greater influence over future corporate developments even if a full acquisition never materializes.

Total Retail's Take: GameStop's pursuit of eBay signals that Cohen is thinking beyond the company's historical identity. He's positioning GameStop to become a diversified commerce platform centered on enthusiast communities, collectibles and marketplace economics rather than physical video game sales.

For eBay, this development creates both risk and opportunity. Even if a GameStop takeover never happens, shareholder scrutiny is likely to intensify, increasing pressure on management to accelerate growth, improve efficiency, and clearly define why its current strategy creates more value than selling to GameStop.