GameStop Corp. CEO Ryan Cohen is now weighing whether to pull his company’s $56 billion unsolicited takeover bid for eBay Inc., marking a dramatic shift in one of the year’s most closely watched corporate sagas.
According to people familiar with the matter, Cohen is considering replacing the acquisition proposal with a partnership or joint venture arrangement between the two companies.
The potential partnership structure would allow eBay to leverage GameStop’s roughly 1,600 US retail locations to grow market share in high-margin categories such as trading cards and collectibles.
GameStop, as one of eBay’s largest shareholders, would seek representation on eBay’s board as part of any such partnership agreement reached between the two companies.
GameStop has not made a final decision, and Cohen could still weigh other options beyond either a full acquisition or a partnership structure.
The original proposal, unveiled in May, offered eBay shareholders $125 per share in a cash-and-stock deal evenly split between cash and GameStop equity, valuing eBay at roughly $55.5 billion.
The financing plan for that deal relied on approximately $9.4 billion in GameStop’s cash reserves and up to $20 billion in debt backed by a commitment letter from TD Securities.
eBay’s board swiftly rejected the bid, calling it “neither credible nor attractive,” and raised objections about deal financing, combined-company governance, and Cohen’s compensation structure.
Cohen responded aggressively after the rebuff, with GameStop nearly doubling its eBay stake to 9.75%, making it eBay’s second-largest shareholder behind Vanguard Group funds.
Cohen publicly stated at the time that he intended to close a deal regardless of the obstacles, signaling a determination that now appears to be softening toward a more cooperative approach.
The market has rendered a harsh verdict on the takeover pursuit, with GameStop shares losing 28% of their value since the original offer was floated in May, while eBay stock gained 7.6% over the same period.
On Monday, eBay’s stock closed down about 4% to $107.71, while GameStop shares dropped 2% to $18.79 per share as news of the potential withdrawal emerged.
The episode has underscored the enormous financial gap between the two companies, with eBay carrying a market value nearly six times that of GameStop at the time the bid was first announced.
A pivot toward partnership rather than acquisition could represent a face-saving path for Cohen, allowing GameStop to extract strategic value from its significant eBay stake without continuing a costly and contested takeover battle.
