GameStop Raises eBay Stake in Takeover Fight

GameStop Corp. (GME, Financials) is not backing away from eBay.The company raised its stake in eBay to 7.8% from 6.6%, even after eBays board rejected its buyout approach. That tells investors one thing: GameStop is still interested, and it may not be done pushing.

A bigger stake does not mean a deal is coming. But it does make the situation harder for eBay to brush aside. When a company keeps buying after being told no, investors usually start looking for the next move. That could mean a revised offer, more pressure on the board or a broader push for changes.

For eBay shareholders, GameStops larger stake could keep the stock in focus. For GameStop shareholders, the bigger question is simple: What does management see in eBay, and how much is it willing to spend?

That is what makes the story interesting. GameStop is trying to do more than run its retail business, but that comes with a trade-off. Some investors may see the move as bold. Others may worry GameStop is stepping too far outside familiar territory.