GameStop may drop its $56 billion eBay bid and offer up its 1,600 stores in a partnership

[midian182]

In a nutshell: The long-running saga that is GameStop's attempted $56 billion acquisition of eBay might be coming to an end. GameStop CEO Ryan Cohen is reportedly considering withdrawing the audacious bid and proposing a partnership or joint venture instead.

Bloomberg reports that Cohen is weighing a deal that would allow eBay to make use of GameStop's roughly 1,600 US retail locations. The arrangement could help both companies grab a larger share of higher-margin categories. GameStop would also seek seats on eBay's board as part of any partnership.

No final decision has been made, and Cohen could still pursue other options, according to the people familiar with the matter. Neither company has commented on the report.

GameStop's interest in eBay was first reported in early May, when the retailer was worth around $12 billion and its prospective target was valued at roughly $46 billion. Cohen formally submitted the unsolicited offer soon afterward, proposing to pay $125 per eBay share in an equal mix of cash and GameStop stock.

GameStop's share price over the previous 6 months

The bid was always going to be a tough sell. Its financing depended heavily on debt and issuing more shares, raising concerns about both GameStop's ability to fund the purchase and the dilution existing shareholders could face. A commitment from TD Securities for up to $20 billion in debt was contingent on the combined business securing an investment-grade credit rating.

Unsurprisingly, eBay's board rejected the proposal later that month, calling it "neither credible nor attractive." It pointed to the uncertain financing, the potential impact on eBay's growth and profitability, operational risks, the proposed leadership structure, and GameStop's governance and executive incentives.

eBay's share price over the previous 6 months

Cohen didn't take the rejection quietly. GameStop increased its eBay holding from a 5% economic stake to 43.4 million common shares, or 9.8% of the company, in July. That made it eBay's second-largest shareholder behind Vanguard funds. Cohen also vowed that GameStop was coming for the marketplace "one way or another."

Cohen previously suggested using GameStop stores as eBay drop-off, shipping, authentication, and live-commerce hubs. Both companies have been expanding their presence in trading cards and other collectibles, giving them some obvious common ground.

GameStop shares rose in early trading following the report, while eBay fell. Since the offer was announced in May, GameStop's stock has dropped 28%, while eBay has gained 7.6%.

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GameStop may drop its $56 billion eBay bid and offer up its 1,600 stores in a partnership

 

[Squid Surprise]

Eventually Ebay will own GameStop I'd guess... and Cohen will probably finagle his way onto the board...

 

[NumberNine]

Interesting.

 

[yRaz]

"we're going to buy you"
"No, we're going to buy you!"
Isn't this just called a merger?

 

[Squid Surprise]

"we're going to buy you"
"No, we're going to buy you!"
Isn't this just called a merger?

They’re basically negotiating to see who gets control after the merger… any sane person can see that eBay should hold all the cards but… GameStop is attempting to leverage a bit more…. Time will tell I suppose…

 

[MasterMace]

As terrible as eBays executives are, I think they realized some time ago that retail is crap and decided not to go with a Sears-style shift. Sears fell apart when it moved away from its delivery service to retail.

 

[Anton Longshot]

GameStop: "Our actions in the past few months aren't death throes, we swear".

Sure.

 

[Dreadcthulhu]

GameStop: "Our actions in the past few months aren't death throes, we swear".

Sure.

GameStop is actually doing surprisingly well from a financial standpoint these days; they went through a nasty rough patch but their pivot to stuff like collectable trading cards has paid off. The FY2026 Q1 figures they posted in June was literally the most profitable quarter they have ever had. That said, they are way to small to seriously buy Ebay, but the CEO using it as an entry point for merger discussions (that would presumably leave the GameStop CEO in a good position) make some sense.