GameStop may abandon $56B eBay takeover bid in favor of partnership: Report
eBay previously called the bid "neither credible nor attractive."
GameStop may abandon its proposed $56 billion acquisition of eBay and pursue a partnership or joint venture instead, Bloomberg reported Monday, citing people familiar with the discussions.
The latest development follows GameStop’s statement that it would continue pursuing the deal despite eBay rejecting its proposal. The company offered $125 per eBay share, with 50% in cash and 50% in GameStop stock.
eBay described the offer as “neither credible nor attractive,” raising concerns about GameStop’s ability to finance the acquisition, the leverage it could add and the operational risks of integrating the two companies.
CEO Ryan Cohen is now considering a structure under which eBay could use GameStop’s approximately 1,600 US stores to expand its business in trading cards, collectibles and other high-margin categories, according to the report.
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The video game retailer would potentially receive a seat or seats on eBay’s board as part of such an arrangement. The company is already one of eBay’s largest shareholders, holding 9.75% of the company as of July 15, after initially building a 5% stake.
Shares of GameStop rose over 2% ahead of today’s opening bell.