GameStop is asking shareholders to approve a massive increase in the number of shares the company can issue — from 300 million to 2.5 billion. The move comes as the video game retailer is actively pursuing a deal to acquire eBay, according to people familiar with the matter.
Why the share count is rising
The current authorization of 300 million shares has been in place for years. The proposed 2.5 billion figure would give GameStop far more room to issue stock, either to raise cash or to use as currency for acquisitions. Companies often boost their authorized share count ahead of large deals, though GameStop hasn't explicitly said the increase is tied to the eBay pursuit.
In a filing with the Securities and Exchange Commission, the company said the additional shares would provide “flexibility for future corporate needs.” Shareholders will vote on the proposal at the next annual meeting, the date of which hasn't been announced.
GameStop's eBay ambitions
GameStop's interest in eBay isn't new. The retailer has been exploring a purchase of the online marketplace for weeks, though no formal offer has been made public. An acquisition of eBay would be a dramatic shift for GameStop, which has spent years pivoting from brick-and-mortar video game sales to digital and collectibles. eBay's global marketplace could give GameStop a platform to sell digital goods, trading cards, and other items far beyond its current reach.
The two companies have held preliminary discussions, but the talks are still in early stages. It's unclear how much an eBay deal would cost or how GameStop would finance it. The share count increase could be a sign the company plans to use stock as part of the payment.
What happens next
Shareholders will get the final say on the share authorization increase. If approved, GameStop's board would have the power to issue new shares at its discretion. That could pave the way for a formal bid for eBay, but no timeline has been set. The company has not commented on whether it would need to borrow additional money or issue debt to complete a deal.
Investors are watching closely. GameStop's stock has been volatile since the retail trading frenzy of 2021, and a major acquisition would test the company's ability to execute. For now, the next concrete step is the shareholder vote. A date for that meeting has not been released.
