GameStop–eBay Deal Buzz Sparks New Retail Chatter: Traders Add Etsy To Wishlist

• Retail dealers doubted GameStop's reported eBay merger due to the disparity in magnitude.
• GME surged 4%, and eBay rose 13% after hours on Friday, with retail sentiment on Stocktwits positive.
• With eBay valued at $46 billion and GameStop at $12 billion, critics said the purchase would dilute GME shareholders or add debt.

Retail traders are pushing back against GameStop (GME), which is reportedly exploring a takeover of eBay (EBAY), with some questioning the deal’s feasibility and others suggesting Etsy (ETSY) as a better fit.

According to the Wall Street Journal article, CEO Ryan Cohen was reportedly considering a proposal as part of a strategy to turn GameStop into a retail and investment platform worth more than $100 billion. Following this report, GameStop shares rose 4%, and eBay rose 13% after hours trade on Friday. 

On Stocktwits, retail sentiment around GME remained in the ‘bullish’ zone, with chatter at ‘extremely high’ levels over the past day. While retail sentiment around EBAY remained in the ‘extremely bullish’ zone, chatter stayed at ‘extremely high’ over the past day.

Retail Backlash Grows Over GameStop–eBay Deal

However, some users on the platform shared a bearish view. Some users cautioned that the agreement might be "very bad for GME shareholders." 

Some questioned how a $12 billion corporation could purchase a $46 billion company, citing the possibility of significant debt or equity dilution. As of early May 2026, eBay is worth around $46 billion, which is thrice the size of GameStop's, which is why a takeover would be exceptionally difficult. In contrast Etsy’s market cap stands at roughly $6 billion.

According to the retail traders’ chatter, an often-cited breakdown indicated that a cash-and-stock acquisition would make eBay's stockholders the largest owners of the merged company, but would greatly dilute the stakes of current GameStop investors. The transaction might be a heavy load on GameStop, given its size, if it is funded by debt. 

‘Why Not Etsy?’: Retail Floats Alternatives

As the doubt mounts, some retail traders are pointing to Etsy as a more feasible takeover possibility. Users pointed to Etsy’s fit with GameStop’s shifting emphasis on collectibles, niche commerce, and community-centric markets, saying it might be a bridge to Cohen’s larger e-commerce goals without the size mismatch of eBay.

The conjecture comes as Cohen is transitioning GameStop from a “survival phase” to an “expansion phase” and boasts an increasing cash hoard of $9 billion as of March. The firm met earnings projections, but revenue continued to decline as it cut its physical retail base.

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