GameStop Swaps $1.4 Billion Debt for Equity

GameStop Corp. announced a privately negotiated agreement to exchange approximately $1.4 billion of zero-coupon convertible notes for Class A common shares. The transaction targets $400 million of notes due in 2030 and $1 billion due in 2032, allowing the company to lower its long-term debt obligations without a cash outlay. Following the cancellation of these notes, GameStop will retain approximately $2.8 billion in convertible debt.

The number of shares to be issued will be based on the average volume-weighted share price over a 35-session period beginning August 3, 2026, with an expected closing date around September 23. Shares dropped 7.5% in premarket trading as investors reacted to the potential for share dilution.

Separately, regulatory filings indicate that GameStop holds a 9.8% stake in eBay. CEO Ryan Cohen has expressed interest in acquiring the e-commerce platform in a deal valued at $56 billion.