GameStop investors clear the way for a fresh attempt at buying eBay

By Bill Peters

Shareholders approve a change that will let the videogame retailer issue more stock

Shares of GameStop are up around 10.6% so far this year.

GameStop on Tuesday said its shareholders had approved all proposals at its annual shareholder meeting - including a change that will allow the videogame retailer to issue more stock related to a potential bid for auction platform eBay.

The announcement from GameStop (GME) is the latest twist in the drama surrounding its efforts to buy eBay (EBAY), a much bigger company. Analysts have said the math and the logic of that offer don't exactly work out.

GameStop said the proposal to boost the count of its authorized common shares to 2.5 billion - which would come from an amendment to its certificate of incorporation - received an affirmative vote of 68.7% of those cast. The company said the amendment would provide the capacity to issue common stock "in connection with strategic transactions, including its proposed acquisition of eBay."

Shares of GameStop were up fractionally in after-hours trading on Tuesday, after finishing 2.5% lower in the regular session. The stock is up 10.6% so far this year. Shares are trading at around $22, well off the highs reached during the height of GameStop's meme-stock glory in 2021.

Shares of eBay were trading fractionally higher after hours. EBay has a market cap of around $50 billion; GameStop's stands at around $10 billion.

GameStop first made its unsolicited $56 billion offer to buy eBay in May. While eBay rejected the offer later that month, GameStop has since raised its stake in eBay.

GameStop's sales have been wobbly, amid the flight to digital gaming. The company last month said its board had approved a $2 billion share-buyback plan, and said collectibles had helped drive a 14% sales increase during its first quarter.

Last month, GameStop announced that CEO Ryan Cohen had withdrawn a potentially hefty CEO performance award from the company's proxy statement.

At that time, Cohen said he "wants leadership fully focused on GameStop's operating performance and its proposed eBay acquisition."

-Bill Peters

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