GameStop Reportedly Plans to Withdraw $56B eBay Acquisition Bid, Exploring Partnership Model Instead
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GameStop CEO Ryan Cohen is weighing whether to drop his $56 billion takeover bid for eBay and pursue a joint venture instead — as GameStop's own stock has fallen 28% since the offer, eroding the deal's financial logic.
Why shift from buying to partnering?
The math no longer works. GameStop's market cap has shrunk to roughly $8.6 billion, with about $8.4 billion in cash — far too small to swallow a $56 billion target without massive leverage.
eBay shares have climbed 7.6% since the bid, while GameStop has dropped 28%. This means → the original $125-per-share offer premium has narrowed sharply, undermining the deal's economics.
In plain terms = the buyer keeps getting cheaper and the target keeps getting pricier. The arithmetic foundation of this deal is crumbling.
What would the partnership look like?
Cohen is considering a partnership or joint venture built around GameStop's network of roughly 1,600 U.S. retail stores, according to people familiar with the matter.
The focus would be trading cards and collectibles — high-margin categories where eBay's online traffic and GameStop's physical footprint could complement each other.
As a condition, GameStop would seek a seat on eBay's board. This means → even without an acquisition, Cohen still wants a voice in eBay's strategic direction.
What leverage does GameStop actually have?
GameStop holds roughly 9.75% of eBay, making it the company's second-largest shareholder behind Vanguard Group funds.
That stake is itself a bargaining chip. This reflects a deliberate equity build-up by Cohen before the bid — he did not come to the table empty-handed.
But the gap between an $8.6 billion market cap and a $56 billion target means GameStop is punching well above its weight, no matter which path it chooses.
Why did "Big Short" Burry walk away?
Michael Burry — the Scion Asset Management founder famous for betting against subprime mortgages — sold his entire GameStop position after the bid was announced.
His concern: the debt load GameStop might take on to close the deal. In plain terms = Burry believes a forced acquisition could crush GameStop under leverage.
This reflects fading market confidence in the deal — even an investor known for contrarian bets chose to exit.
What happens next?
People familiar with the matter stress that GameStop has not made a final decision; Cohen may still consider other options.
The outcome hinges on further negotiations between Cohen and eBay's management — and neither side has commented publicly.
This means → the pivot from acquisition to partnership is a directional signal, not a done deal. Significant uncertainty remains.
Content is for reference only, not financial advice.