GameStop (NYSE:GME) shares rose 1.4% in premarket trading to $22.07 after the video game retailer reaffirmed its intention to pursue the proposed acquisition of eBay, despite the online marketplace rejecting its unsolicited takeover approach.
In a regulatory filing, GameStop confirmed that it remains committed to its approximately US$56 billion cash-and-stock proposal after eBay turned down the offer. The company said it intends to continue pursuing the transaction as part of its long-term strategic plans.
Alongside the update, GameStop projected adjusted EBITDA of more than US$600 million for fiscal 2026, compared with approximately US$345 million reported for fiscal 2025. The company has also continued building its position in eBay, with its ownership stake now standing at 7.8%.
Chief Executive Ryan Cohen has reportedly waived a potential performance-based compensation package in order to focus on advancing the proposed acquisition, underlining management’s commitment to the deal.
Recent financial performance has also supported investor sentiment. GameStop delivered record quarterly net income of US$389.6 million and its highest-ever first-quarter operating income of US$143.3 million, while net sales increased 14% year over year, driven by continued strength in its collectibles business.
The broader U.S. equity market offered little support for the move, with the S&P 500 slipping 0.05%, the Dow Jones Industrial Average falling 0.09% and the Nasdaq declining 0.2%. As a result, GameStop’s premarket gains were largely driven by company-specific developments rather than wider market sentiment.
Although GME has rebounded from its 52-week low of US$19.93, the stock continues to trade well below its 52-week high of US$28.10, leaving room for further recovery should investor confidence improve.
Taken together, GameStop’s renewed commitment to the eBay transaction, stronger earnings expectations and persistently elevated short interest continue to create the potential for significant share price volatility. The company has also indicated that it plans to release additional information outlining its strategic vision and integration plans for the proposed combination, although no timetable or financing updates have yet been provided.