GameStop Corp. has filed a proxy to increase its authorized share count from one billion to 2.5 billion [1].
This move provides the company with the financial flexibility to potentially issue new stock to fund a cash-and-stock acquisition of eBay Inc. [1], [4].
The filing follows a rejected takeover proposal from GameStop CEO Ryan Cohen. The bid valued eBay at between $55.5 billion [5] and $56 billion [4], offering $125 per share [4]. This price represented a 46% premium over eBay's unaffected closing price on Feb. 4, 2026 [4].
By adding 1.5 billion shares to its authorized limit [1], GameStop creates a mechanism to acquire the remaining equity of the e-commerce giant. The company already holds a stake in eBay, reported as 6.55% [2] or roughly 6.5% [3].
GameStop's pursuit of eBay persists despite the initial rejection. The increase in authorized shares allows the company to maintain a strategic position while exploring further offer structures, potentially shifting the balance of the deal to include more equity.
Market analysts have monitored the situation since the bid became public earlier this month. The strategy signals a commitment from Cohen to pivot GameStop toward a larger e-commerce footprint through an aggressive acquisition of one of the web's oldest marketplaces.
“GameStop filed a proxy to increase its authorized share count from one billion to 2.5 billion”
The increase in authorized shares is a tactical preparation for a hostile or revised takeover attempt. By expanding its equity pool, GameStop can offer a combination of cash and stock that does not deplete its liquid reserves, effectively using its own valuation as currency to acquire eBay's massive infrastructure and user base.
