GameStop seeks shareholder approval for share count increase amid eBay bid

Investing.com -- GameStop Corp. is asking shareholders to approve a significant increase in its authorized share count as the video-game retailer pursues an acquisition of eBay Inc.

In a securities filing on Friday, GameStop said it is seeking approval to increase its authorized shares of common stock to 2.5 billion and 2.505 billion of all classes of stock. As of May 20, GameStop had 448.7 million shares of common stock issued and outstanding and more than 269 million shares available for future issuance, according to the filing.

The company's current charter authorizes the issuance of 1 billion shares of common stock and 5 million shares of preferred stock.

"We view our equity as precious and do not intend to issue new shares lightly," GameStop said in a letter to shareholders. "A reserve of authorized shares ensures GameStop can act decisively when the right opportunity arises."

GameStop Chief Executive Officer Ryan Cohen has made an unsolicited $56 billion offer for eBay, which he has said would be purchased using half cash and half stock. EBay has rejected the offer, describing it as "neither credible nor attractive."

GameStop's annual shareholder meeting is scheduled for July 7.

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