GameStop Posts Record Quarterly Profit and Launches $2 Billion Share Buyback Amid Ongoing eBay Bid

GameStop Corp. posted first-quarter results ending May 2, with net sales of $835.3 million, up 14 % from $732.4 million a year earlier, and net income of $389.6 million, the company’s highest quarterly profit on record. Shares rose between 6 % in after-hours trading and 13 % in regular sessions.

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns Surface

The surge stemmed mainly from a booming collectibles segment, which contributed 41.8 % of sales versus 28.9 % a year ago, while hardware, accessories and software sales fell to 39.9 % and 18.3 % respectively.

GameStop shares jump 13% after strong quarterly earnings, $2 billion share buyback

Operating income rose to $143.3 million, a record for the quarter. Adjusted net income, excluding unrealized gains, was $179.3 million (30 cents per share). SG&A expenses fell to $201.6 million from $228.1 million. Cash and marketable securities total $9.7 billion, boosted by a $268.4 million derivative gain linked to eBay shares. The retailer operates about 2,200 stores in the United States, France and Australia.

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns Surface

The board approved a $2 billion share repurchase program through June 2, 2029, superseding the 2019 authorization. Management said the buyback will support earnings per share and give flexibility as GameStop reallocates capital from hardware to higher-margin collectibles. The announcement coincided with a 6-13 % rise in the stock, reinforcing investor confidence.

GameStop stock jumps after record profit, $2B buyback approval

GameStop CEO Ryan Cohen reaffirmed the pursuit of eBay, arguing that a combined platform would generate cost synergies and a larger online marketplace. GameStop’s eBay ownership increased to about 6.6 % from 5 %. eBay’s board, after reviewing the proposal, said the offer was not credible or attractive, citing financing uncertainty, leverage concerns and governance risks.

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns SurfaceReutersGameStop revenue up 14%, approves $2B buybackGameStop shares jump 13% after strong quarterly earnings, $2 billion share buybackGameStop stock jumps after record profit, $2B buyback approval

GameStop asked shareholders to approve an increase in its authorized share count and a performance-based option award for CEO Ryan Cohen. These measures aim to align executive compensation with the turnaround objectives and to provide flexibility for future capital actions.

GameStop stock jumps after record profit, $2B buyback approval

Analysts Don Bilson and Mark Cohen question the bid’s feasibility, noting a “zero chance” of success and insufficient financing.

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns Surface

Sources differ on the exact valuation of the eBay offer, citing $55.5 billion, $56 billion, or $56 billion in cash and stock. Reported post-earnings share price gains vary between a 6 % after-hours rise and a 13 % jump in regular trading.

GameStop stock jumps after record profit, $2B buyback approval

• “neither credible nor attractive.” — Paul Pressler, Board Chairman, eBay

Reuters

• “zero chance” a tender offer would work. — Don Bilson, Gordon Haskett

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns Surface

• “had enough money to make the claim but not enough money to make his claim stick.” — Mark Cohen, former director of retail studies, Columbia Business School

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns Surface

• “the marketplace of choice for enthusiasts.” — Jamie Iannone, CEO, eBay

GameStop Reports Record Profit, Plans $2 Billion Buyback as eBay Concerns Surface

GameStop will seek shareholder approval to raise its authorized share count and grant a performance-based option award to CEO Cohen. The $2 billion buyback runs to mid-2029, while the eBay acquisition attempt remains unresolved.

GameStop stock jumps after record profit, $2B buyback approval