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GameStop wants to cut eBay’s advertising budget
Morgan Stanley was similarly skeptical of the potential savings. “On the financial side, we also think that the potential opportunities can be very limited if the physical and digital business requires a different price base, as 3P markets do with 1P sellers. To add another problem, GameStop has already begun to reduce costs a lot,” the research note said.
Analysts at Morgan Stanley expressed doubts about “how to invest because of the difference in the price of the stock.” Once completed, he said, it could be the largest investment, “even more than what has been recently announced.” $55 billion Electronic Arts transaction.”
GameStop said eBay spent $2.4 billion on sales and marketing in 2025 but only added 1 million buyers, increasing its total from 134 million to 135 million. GameStop announced that it will cut $1.2 billion from eBay’s sales and marketing budget, saying that the current budget “doesn’t produce many users in the market that are close to the popular brand.”
GameStop plans to cut another $300 million from eBay’s manufacturing costs and $500 million from general services and management. The combined company will combine its finance, HR, real estate, legal, IT, and professional services after the merger to save money, GameStop said.
GameStop showed how its revenue has improved under Cohen, saying it “went from $381 million in revenue in 2021 to $418 million in fiscal 2025.” eBay said in a press release today that “its board and leadership team are committed to a strategy that promotes sustainable growth and value for our shareholders over the long term.”
eBay last week report Q1 2026 revenue of $3.1 billion, up 19 percent year over year. eBay’s GAAP net income was $512 million, up 2 percent.
GameStop, which is on various financial systems, reported sales of $1.1 billion in Q4 2026. This was down from $1.28 billion in the fourth quarter of the previous year. GameStop’s net income for Q4 also fell year-over-year, from $131.3 million to $127.9 million.
