GameStop has increased its stake in eBay to nearly 10%, signaling it remains committed to pursuing the e-commerce company even after its unsolicited takeover offer was rejected.
According to a regulatory filing on Friday, the videogame retailer now owns 43.4 million eBay shares, or about 9.8% of the company, Reuters reported. The disclosure marks a sharp increase from early May, when GameStop Chief Executive Officer Ryan Cohen said the company had built a roughly 5% economic interest through derivatives and beneficial ownership.
The latest filing showed GameStop converted that economic exposure into common stock over recent weeks. It purchased 3.5 million eBay shares in June for about $381 million and settled another 39 million shares through put/call pair transactions on Friday.
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The increased holding comes as Cohen continues to push for an acquisition of eBay, a deal that would value the company at roughly $56 billion. eBay had rejected GameStop's cash-and-stock proposal in May, calling it neither credible nor attractive.
In a separate filing submitted on Friday, Cohen reiterated his intentions, saying, "I'm not going to call my shots, but we're coming for eBay one way or another." The filing included remarks from his Bloomberg Television interview on Thursday.
Cohen has argued that combining GameStop and eBay under his leadership would create a stronger competitor to Amazon.
To support the proposed transaction, GameStop shareholders last month approved an increase in the company's authorised share count, giving it greater financial flexibility. Cohen has also committed $500 million of his own capital toward the deal.
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However, Wall Street has raised concerns over the financing structure, which relies heavily on a non-binding commitment from TD Securities for up to $20 billion in debt. Reuters reported that the financing remains contingent on the combined company securing an investment-grade credit rating.
Responding to criticism during the Bloomberg interview, Cohen said, "There has been a complete failure by the media to explain why this transaction makes sense." He added that GameStop has a highly confident letter from its bankers and a lot of parties that are interested in this transaction.
When asked whether he would improve his offer for eBay, Cohen declined to commit, saying, "I'm not going to negotiate against myself."
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