GameStop weighs withdrawing $56B eBay bid for partnership

GameStop CEO Ryan Cohen is weighing withdrawal of the $56 billion bid for eBay in favor of a partnership, Bloomberg reported Monday, sending eBay shares down 2.5 percent while GameStop rose 3.7 percent.

Bloomberg News reported, citing people familiar with the matter, that Cohen is considering a proposal that would allow eBay to use GameStop's roughly 1,600 U.S. retail locations, potentially helping both companies expand market share in higher-margin categories such as trading cards and collectibles. GameStop would seek seats on eBay's board as part of any partnership, the report said.

The potential pivot follows eBay's rejection of GameStop's unsolicited takeover proposal in May, when the board called the offer "neither credible nor attractive." The original bid of approximately $125 per share in a cash-and-stock deal represented a roughly 20 percent premium over eBay's stock price at the time. Analysts questioned the financing plan, which relied heavily on debt commitments and stock issuance, given that GameStop's market capitalization of roughly $11-12 billion was nearly six times smaller than eBay's.

In July, GameStop disclosed it had increased its stake in eBay to 9.8 percent, or about 43.4 million shares, making it one of the e-commerce company's largest shareholders. Cohen vowed to pursue a deal "one way or another" after the rejection. A withdrawal would raise questions about the purpose of that investment, while a partnership could give GameStop board influence without the financial burden of a full acquisition.

The strategic shift marks a significant reversal for Cohen, who forfeited a proposed CEO performance award potentially worth up to $35 billion in June, a move widely seen as evidence that the eBay acquisition was his singular focus. The two companies have pursued growth in overlapping categories — trading cards and collectibles — but their business models diverge sharply. eBay operates an online marketplace that earns fees by connecting buyers and sellers, while GameStop is a brick-and-mortar retailer that purchases inventory and resells it through its store network. The structural mismatch was a central concern for eBay's board, which cited governance and execution risks in its May rejection.

GameStop has not made a final decision and Cohen could still pursue other options, according to the Bloomberg report. Neither company immediately responded to Reuters' requests for comment, and Reuters could not independently verify the report.

A $56 Billion Ambition Meets Boardroom Reality

The potential withdrawal would remove a significant overhang on eBay's stock, which has traded below the $125 per share offer price since the bid was announced. For GameStop, walking away from the acquisition thesis entirely would raise questions about the strategic purpose of its 9.8 percent stake, which gives it influence through shareholder proposals and board elections even without a formal deal. The stake, accumulated over several months, represents a substantial capital commitment for a company of GameStop's size.

A partnership structure would represent a middle path: GameStop retains its position as one of eBay's largest shareholders while gaining board representation, and eBay gains access to GameStop's physical retail footprint without the governance and execution risks of being absorbed by a much smaller company. The last time a retailer of GameStop's size attempted a takeover of this magnitude was in the early 2000s, when smaller acquirers routinely failed to complete deals against larger targets without hostile proxy fights. A partnership would avoid that scenario entirely while still giving Cohen a seat at the table.

The outcome carries implications beyond the two companies. A successful partnership could reshape how legacy retailers and online marketplaces collaborate in the collectibles space, where both companies compete with Amazon and specialized platforms. If the bid is formally withdrawn, it would mark the end of one of the most closely watched M&A sagas of 2026, with Cohen's next move determining whether GameStop's $56 billion ambition translates into a more measured strategic alliance. For eBay shareholders, the resolution of this saga removes a persistent source of uncertainty that has weighed on the stock since May.

This article is for informational purposes only and does not constitute investment advice.