GameStop weighs withdrawing $56B eBay takeover bid in favor of partnership

GameStop may be rethinking the most audacious corporate takeover attempt in recent memory. The video game retailer is reportedly considering withdrawing its $56 billion unsolicited bid for eBay and proposing a partnership instead, a move that would represent a dramatic strategic pivot after months of aggressive posturing.

The potential reversal comes roughly three months after GameStop first lobbed the offer at eBay’s board, which rejected it almost immediately. For a company with a market cap of around $11-12 billion trying to swallow one worth multiples of that, the math was always going to need some creative explanation.

How we got here

GameStop launched its takeover bid in early May 2026, offering approximately $125 per share in a cash-and-stock deal. That price represented roughly a 20% premium over eBay’s stock price at the time.

On May 12, eBay’s board formally rejected the bid, pointing to what it diplomatically described as “substantial concerns” over credibility, financing, leverage, and execution risks.

Rather than retreating, GameStop doubled down. Ryan Cohen, GameStop’s chairman and CEO, began systematically increasing the company’s stake in eBay. That position grew from an initial 5% to nearly 10% by July 2026, amounting to about 43.4 million shares. Cohen also forfeited a proposed CEO performance award potentially worth up to $35 billion in June, a move interpreted as a signal that the eBay acquisition was his singular focus.

The partnership pivot

GameStop’s vision has been to fuse its retail operations with eBay’s massive online marketplace, creating a combined entity capable of competing more directly with Amazon. Analysts have consistently expressed skepticism about how GameStop could realistically structure a deal of this magnitude, given the challenge of leveraging up nearly five times its own value to acquire a target.

What’s at stake for both companies

For GameStop, this decision carries real strategic weight. The company has spent significant capital building its eBay position to nearly 10%, and walking away from the acquisition thesis entirely would raise questions about what that investment was for.

Cohen’s willingness to forfeit a performance award worth up to $35 billion suggested deep personal conviction in the acquisition path.

For eBay, the company’s board was clear in its rejection that the governance and execution risks of being absorbed by a much smaller company were dealbreakers.

GameStop’s nearly 10% stake in eBay gives it significant leverage regardless of the outcome. As one of eBay’s largest shareholders, GameStop can influence corporate strategy through shareholder proposals and board elections even without a formal deal.

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