GameStop Seeks to Boost Share Count as eBay Pursuit Continues After Rejection
GameStop (GME) is seeking shareholder approval to increase its authorized shares from 1 billion to 2.5 billion, as disclosed in a recent SEC filing. This move would give GameStop more financial flexibility, including the potential to pursue large acquisitions such as eBay. GameStop recently made an unsolicited half-stock, half-cash offer to acquire eBay for over $55 billion, which eBay rejected as "neither credible nor attractive." Despite the rejection, GameStop increased its stake in eBay, now holding about 6% of its shares. The proposal for increased authorized shares is part of a broader set of initiatives scheduled for a July 7 shareholder meeting, including board and executive compensation matters. GameStop’s share price is down 1.93% on the day and about 14% for the month, but up nearly 10% year-to-date. The company also has a position in Bitcoin and uses a covered call strategy. If the share increase is approved, GameStop may further expand its eBay stake or pursue other major investments.
