GameStop is reportedly reconsidering its proposed $56 billion acquisition of eBay, with CEO Ryan Cohen now weighing a partnership or joint venture with the online marketplace instead, according to Bloomberg-sourced reports. The alternative plan could allow eBay to use GameStop’s approximately 1,600 US retail stores for areas such as trading cards and collectibles, while GameStop would seek representation on eBay’s board. Neither company has confirmed that a final decision has been made.
The potential reversal comes just months after GameStop made an unsolicited proposal to acquire eBay for approximately $55.5 billion, offering $125 per eBay share in a combination of cash and GameStop stock. eBay rejected the proposal in May, and investors had questioned whether GameStop could realistically finance such a large transaction given the enormous difference in size between the two companies.
From $56 billion takeover to potential partnership
GameStop’s original plan was much more ambitious than a commercial partnership.
In May 2026, the company proposed acquiring all outstanding eBay shares that it did not already own for $125 per share, valuing the transaction at approximately $55.5 billion.
The proposed consideration was split:
- 50% cash
- 50% GameStop common stock
- $125 per eBay share
- Approximately $55.5 billion total equity value
GameStop’s own proposal described the transaction as a non-binding offer and said it had accumulated a 5% economic position in eBay at the time.
GAMESTOP'S ORIGINAL EBAY PLAN
GAMESTOP
│
│ $55.5B offer
↓
EBAY
│
┌────────┴────────┐
↓ ↓
50% cash 50% GameStop stock
│ │
└────────┬────────┘
↓
Full acquisition
The latest reports suggest Cohen may now be considering a very different approach.
ORIGINAL PLAN
GameStop
↓
Acquire eBay
↓
$55.5B transaction
POSSIBLE NEW PLAN
GameStop
↓
Partnership / joint venture
↓
eBay uses GameStop stores
+
GameStop seeks board representation
Why GameStop may be reconsidering the takeover
The proposed acquisition faced an obvious financial challenge: GameStop is dramatically smaller than eBay.
MarketWatch reported that GameStop’s market capitalisation was around $8.6 billion, compared with roughly $50 billion for eBay at the time of the latest reports.
That creates a striking mismatch.
| Company | Approximate valuation / market value |
|---|---|
| GameStop | ~$8.6 billion |
| eBay | ~$50 billion |
| Proposed transaction | ~$55.5 billion |
RELATIVE SCALE
GameStop
~$8.6B
███████
eBay
~$50B
████████████████████████████████████████
Offer
~$55.5B
████████████████████████████████████████████
The acquisition would therefore have required GameStop to pursue a transaction several times larger than its own market value.
GameStop had proposed substantial cost savings
GameStop’s May proposal argued that combining the two businesses could create significant efficiencies.
The company estimated approximately $2 billion of annualised cost reductions within 12 months of closing.
The proposal identified potential reductions across several areas:
| Category | GameStop’s proposed annual reduction |
|---|---|
| Sales & marketing | $1.2 billion |
| Product development | $0.3 billion |
| General & administrative | $0.5 billion |
| Total | ~$2.0 billion |
GameStop argued that these savings could substantially improve the combined company’s operating economics.
GAMESTOP'S PROJECTED COST SAVINGS
Sales & marketing
$1.2B
████████████████████████
Product development
$0.3B
██████
G&A
$0.5B
██████████
TOTAL
$2.0B
████████████████████████████████████████
However, those projections were part of GameStop’s acquisition pitch rather than independently verified savings.
eBay rejected the acquisition proposal
eBay’s board rejected GameStop’s unsolicited offer in May.
The rejection was an important turning point because it meant GameStop could not simply proceed with the transaction on the terms it had initially proposed.
Investors also questioned the financing structure and whether GameStop could support a transaction of this size without substantial dilution, debt or both.
That may explain why the potential partnership route is now attracting attention.
What the new partnership idea could look like
Instead of buying eBay outright, GameStop could potentially establish a commercial relationship that combines the companies’ respective strengths.
The most important asset GameStop could bring to such a deal is its physical retail network.
GameStop has approximately 1,600 US stores, according to reports and its own acquisition materials.
eBay, meanwhile, provides a massive online marketplace with millions of buyers and sellers.
GAMESTOP
~1,600 US stores
│
│ Physical network
↓
Authentication
Intake
Fulfillment
Retail presence
│
+
↓
EBAY
Online marketplace
│
↓
Millions of buyers
+
Millions of sellers
The partnership could therefore connect eBay’s digital marketplace with GameStop’s physical infrastructure.
Trading cards and collectibles could be the first opportunity
Trading cards and collectibles appear to be a particularly attractive area for cooperation.
GameStop has increasingly focused on collectibles and trading cards, while eBay already operates a major online marketplace for these categories.
The combination could potentially create a physical-to-digital marketplace.
CUSTOMER
↓
GameStop store
↓
Card / collectible
↓
Authentication
↓
eBay marketplace
↓
Online buyer
↓
Sale
This could allow customers to bring collectibles into GameStop stores while using eBay’s marketplace to reach a much larger pool of buyers.
Why physical stores could matter to eBay
eBay is fundamentally an online marketplace.
It does not have a nationwide retail network comparable to GameStop’s.
GameStop’s stores could potentially provide eBay with physical locations for:
- Collectible intake
- Authentication
- Product inspection
- Customer service
- Returns
- Fulfillment
- Live commerce
- Local pickup
GameStop’s own acquisition presentation explicitly described its roughly 1,600 stores as a potential national network for authentication, intake, fulfillment and live commerce.
EBAY'S DIGITAL STRENGTH
+
GAMESTOP'S PHYSICAL NETWORK
↓
PHYSICAL + DIGITAL MARKETPLACE
The partnership could be more realistic than an acquisition
A joint venture could allow both companies to capture some of the strategic benefits of a combination without requiring GameStop to finance a $55.5 billion takeover.
Acquisition
GameStop
↓
$55.5B deal
↓
Full eBay ownership
↓
Huge financing requirement
Partnership
GameStop
+
eBay
↓
Specific commercial cooperation
↓
Much smaller financial commitment
↓
Potentially lower execution risk
This could also give eBay more control over its own business while allowing GameStop to pursue strategic influence.
GameStop wants board representation
The reported alternative would not necessarily be a simple supplier or commercial agreement.
Cohen is reportedly considering seeking representation on eBay’s board as part of a potential partnership.
That would give GameStop a degree of strategic influence without requiring full ownership.
FULL ACQUISITION
GameStop
↓
100% eBay ownership
POTENTIAL NEW STRATEGY
GameStop
↓
Significant eBay stake
+
Board representation
+
Commercial partnership
This approach could allow Cohen to pursue some of his strategic objectives while avoiding the enormous financing burden of a complete takeover.
GameStop already owns a significant eBay position
GameStop’s relationship with eBay is not purely theoretical.
The company has built a substantial economic interest in eBay.
GameStop’s filings disclosed direct ownership combined with derivatives providing economic exposure to additional eBay shares. Later reports put its economic interest at approximately 9.8%.
GAMESTOP'S EBAY POSITION
Direct ownership
+
Derivatives / economic exposure
↓
~9.8% economic interest
reported
This makes the potential partnership particularly interesting because GameStop already has an economic incentive to see eBay’s value increase.
GameStop’s original proposal was aggressive
The $125-per-share offer represented substantial premiums to eBay’s unaffected trading prices.
GameStop’s May proposal said the offer represented:
| Benchmark | Premium |
|---|---|
| eBay unaffected price | 46% |
| 30-day VWAP | 27% |
| 90-day VWAP | 36% |
The proposal valued eBay’s equity at approximately $55.5 billion.
EBAY OFFER
$125/share
↓
46% premium to
unaffected price
↓
~$55.5B equity value
The problem was not necessarily the attractiveness of the price to eBay shareholders. It was whether GameStop could realistically execute and finance the transaction.
Financing was a major issue
GameStop’s proposal said it had approximately $9.4 billion in cash and liquid investments as of January 31, 2026 and proposed to use approximately $20 billion of debt financing from HCL, arranged through TD Securities.
That still left a substantial financing requirement for a transaction worth approximately $55.5 billion.
PROPOSED TRANSACTION
~$55.5B
│
├── Cash
├── Debt financing
└── GameStop shares
The large use of GameStop stock would also potentially dilute existing GameStop shareholders.
Why eBay might prefer a partnership
From eBay’s perspective, a partnership could offer some of the benefits of GameStop’s physical network without giving up control of the company.
Potential advantages include:
- Access to retail locations
- Collectibles authentication
- Better physical intake
- Expanded fulfillment options
- Greater presence in trading cards
- New customer acquisition
- Live-commerce opportunities
EBAY
Online marketplace
↓
+ GameStop stores
↓
Physical touchpoints
↓
More services
↓
Potential marketplace growth
The exact economics, however, have not been disclosed.
GameStop could also benefit
For GameStop, the partnership could provide access to eBay’s much larger online marketplace without having to buy the entire company.
Potential benefits include:
- More online sales
- Larger customer reach
- Collectibles marketplace expansion
- Better resale infrastructure
- More efficient inventory movement
- New digital revenue opportunities
GAMESTOP
Physical retail
↓
Collectibles
↓
eBay marketplace
↓
National / global buyers
This fits Ryan Cohen’s broader strategy
Ryan Cohen has repeatedly focused on cutting costs, strengthening GameStop’s balance sheet and finding ways to improve the economics of the business.
GameStop’s own acquisition materials highlighted the transformation under Cohen’s leadership, including a move from a $381 million FY2021 net loss to $418 million of net income in FY2025, alongside substantial reductions in selling, general and administrative expenses.
That makes the potential shift from a huge acquisition toward a more capital-efficient partnership consistent with a strategy focused on preserving financial flexibility.
GameStop’s physical stores have been shrinking
There is also an important counterpoint.
Although GameStop has roughly 1,600 US locations, the company has closed many stores over the years.
That means the physical network is not necessarily an unlimited strategic asset.
MarketWatch cited analysts who questioned how much value eBay would gain from GameStop’s stores given the company’s history of store closures.
GAMESTOP STORES
~1,600 US locations
↓
Potential asset
BUT
Store footprint has
declined over time
↓
Actual strategic value
needs to be demonstrated
Trading cards could make the relationship more compelling
Trading cards are one area where the two companies have a natural overlap.
GameStop has expanded into collectibles and trading cards, while eBay has a large marketplace for these products.
A potential partnership could connect:
CARD COLLECTOR
↓
GameStop
↓
Authentication / intake
↓
eBay
↓
Global marketplace
↓
Buyer
This could create a more integrated physical and digital ecosystem around collectibles.
Authentication could be particularly important
High-value collectibles require trust.
Buyers want confidence that:
- Cards are genuine
- Condition is accurately represented
- Grading is reliable
- Sellers are legitimate
- Products will arrive safely
A physical GameStop network could potentially provide locations where items can be inspected or processed.
This is one reason GameStop’s original acquisition materials highlighted authentication as a potential use for its retail network.
The potential deal is not finalized
This is one of the most important points in the story.
Reports say Cohen is considering withdrawing the bid.
That does not mean:
- The acquisition has formally been cancelled
- A partnership has been agreed
- eBay has accepted the partnership
- Board representation has been guaranteed
Neither company has publicly confirmed the reported strategic shift.
CURRENT STATUS
$55.5B bid
↓
eBay rejected
↓
GameStop reconsidering
↓
Possible partnership
↓
NO FINAL DEAL YET
Investor reaction
The news initially produced a mixed-to-negative market reaction.
Reuters reported that GameStop shares were up around 1.6% while eBay shares were down approximately 2.2% following the report. Other market coverage showed both stocks falling during trading as investors digested the implications.
The differing market reactions highlight the uncertainty surrounding the proposal.
NEWS
Possible takeover withdrawal
↓
GameStop
Potentially avoids huge financing burden
eBay
Potentially loses takeover premium
↓
Different investor reactions
Why eBay’s shareholders may care
The original $125-per-share proposal offered eBay shareholders a substantial premium.
If GameStop abandons the offer entirely, shareholders could lose the possibility of receiving that takeover premium.
That helps explain why eBay’s shares could react negatively to reports that the offer may be withdrawn.
TAKEOVER OFFER
$125/share
↓
Potential premium
↓
Offer withdrawn?
↓
eBay trades on standalone value
Why GameStop shareholders may welcome a partnership
From a GameStop shareholder perspective, abandoning the acquisition could remove some major risks.
A $55.5 billion takeover could involve:
- Significant debt
- Massive stock issuance
- Integration risk
- Execution risk
- Regulatory risk
- Cultural differences
- Potential dilution
A partnership could provide strategic benefits with less financial exposure.
ACQUISITION
High capital
High leverage
High integration risk
VS.
PARTNERSHIP
Lower capital
Lower leverage
Lower integration risk
That does not automatically make the partnership better, but it changes the risk profile considerably.
The biggest strategic question
The central question is whether GameStop needs to own eBay to achieve its strategic goals.
If GameStop can use eBay’s marketplace while maintaining its own retail network, a partnership could potentially deliver some of the same benefits at a fraction of the cost.
QUESTION
Does GameStop need:
100% of eBay?
OR
Can GameStop achieve its goals through:
Stake
+
Board seat
+
Partnership
+
Store integration?
That appears to be the strategic question now facing Cohen.
GameStop’s original vision for the combined company
GameStop’s acquisition materials presented a broad vision for the combined business.
The company argued that the two businesses could combine:
GAMESTOP
Physical stores
Collectibles
Gaming expertise
Authentication
+
EBAY
Online marketplace
Global buyers
Global sellers
Payments
Advertising
↓
Combined marketplace
The potential partnership could pursue a smaller version of that strategy without requiring full integration.
Potential partnership structure
An eventual agreement could theoretically include several components.
| Component | Possible role |
|---|---|
| GameStop stores | Physical intake / authentication |
| eBay marketplace | Online sales |
| GameStop stake | Financial interest |
| Board seat | Strategic influence |
| Trading cards | Joint growth category |
| Collectibles | Cross-platform commerce |
| Fulfillment | Physical network support |
| Live commerce | Retail + digital integration |
These are potential areas based on the reported proposal, not confirmed terms of a final agreement.
What could happen to the $56 billion offer?
There are three broad possibilities.
Scenario 1: GameStop withdraws the bid
Cohen abandons the acquisition proposal and pursues a partnership.
Scenario 2: GameStop keeps pursuing the acquisition
The company could continue trying to convince eBay shareholders or its board to reconsider.
Scenario 3: Hybrid strategy
GameStop could retain its eBay stake while pursuing commercial cooperation and potentially seeking board representation.
GAMESTOP
│
┌────────────┼────────────┐
↓ ↓ ↓
Withdraw Continue Hybrid
takeover bid strategy
│ │ │
Partnership $55.5B Stake +
focus acquisition partnership
The latest reports suggest the first or third options are gaining attention, but there is no final decision yet.
Key numbers at a glance
| Metric | Figure |
|---|---|
| Original GameStop eBay offer | ~$55.5 billion |
| Offer price | $125/share |
| Offer structure | 50% cash / 50% GME stock |
| GameStop’s proposed cost savings | ~$2 billion annually |
| GameStop cash + liquid investments | ~$9.4 billion |
| Proposed debt financing | ~$20 billion |
| GameStop US stores | ~1,600 |
| GameStop reported eBay economic interest | ~9.8% |
| eBay market value around latest reports | ~$50 billion |
| GameStop market value around latest reports | ~$8.6 billion |
GameStop-eBay strategy infographic
GAMESTOP
│
↓
~1,600 US stores
│
┌───────────┼───────────┐
↓ ↓ ↓
Authentication Intake Fulfillment
│ │ │
└───────────┼───────────┘
↓
eBay marketplace
│
┌───────────┼───────────┐
↓ ↓ ↓
Trading Collectibles Live
cards commerce
│ │ │
└───────────┼───────────┘
↓
Potential partnership
What investors should watch next
The next developments are likely to centre on whether GameStop formally withdraws its acquisition proposal and whether it presents a concrete alternative to eBay.
Investors should watch:
1. GameStop’s formal position
Will the company officially abandon the $125-per-share proposal?
2. eBay’s response
Would eBay be willing to negotiate a partnership with GameStop after rejecting the acquisition?
3. Board representation
Can Cohen secure a seat or other influence at eBay?
4. GameStop’s eBay stake
Will GameStop increase, maintain or reduce its economic exposure?
5. Retail-store strategy
Can GameStop demonstrate that its stores have meaningful value to eBay?
6. Trading cards and collectibles
Could this become the first major area of commercial cooperation?
7. Financing
If the acquisition remains alive, how would GameStop fund the transaction without excessive dilution or leverage?
Why the story matters beyond GameStop and eBay
The potential shift illustrates a broader trend in corporate dealmaking.
A company does not always need to acquire another company to access its assets.
Strategic partnerships, joint ventures, minority stakes and board representation can provide some of the benefits of an acquisition while reducing financial and integration risks.
OLD APPROACH
BUY THE COMPANY
↓
100% ownership
ALTERNATIVE
BUY A STAKE
+
PARTNER
+
BOARD SEAT
+
COMMERCIAL AGREEMENT
↓
STRATEGIC INFLUENCE
without full acquisition
For GameStop, this could represent a more financially disciplined way to pursue its ambitions in gaming, collectibles and online commerce.
Conclusion
GameStop is reportedly considering withdrawing its roughly $56 billion bid for eBay and replacing the takeover strategy with a potential partnership or joint venture. Under the reported alternative, eBay could gain access to GameStop’s approximately 1,600 US retail locations, while GameStop would seek representation on eBay’s board. Neither company has confirmed that a final decision or agreement has been reached.
The potential strategic shift comes after GameStop’s board proposed a $125-per-share offer for eBay in May 2026, valuing the company at approximately $55.5 billion. The proposal called for 50% cash and 50% GameStop stock and included approximately $20 billion of proposed debt financing. GameStop said it expected the combined company could generate around $2 billion in annualised cost savings.
eBay rejected the unsolicited offer, and the transaction faced a fundamental financial challenge: GameStop was worth only around $8.6 billion at the time of the latest reports, compared with approximately $50 billion for eBay. That made the proposed takeover several times larger than GameStop’s own market value and raised questions about financing, debt and shareholder dilution.
A partnership would offer a dramatically different approach.
Instead of trying to own eBay, GameStop could use its physical retail footprint to support eBay’s online marketplace. GameStop’s approximately 1,600 US stores could potentially serve as locations for authentication, product intake, fulfillment and live commerce, particularly in high-value categories such as trading cards and collectibles. GameStop itself highlighted these potential uses for its retail network in its original acquisition presentation.
For eBay, such a partnership could provide access to a physical network without requiring the company to acquire GameStop. For GameStop, it could provide access to eBay’s enormous online marketplace without taking on the financial and operational burden of buying the entire company.
The strategy could also allow Ryan Cohen to retain strategic influence. Reports indicate that he may seek board representation at eBay, potentially combining GameStop’s existing economic interest with a commercial partnership and greater influence over eBay’s direction.
The trading-card and collectibles market could be particularly important. GameStop’s physical stores could potentially handle authentication and intake, while eBay could provide the online marketplace and access to buyers and sellers. That would create a physical-to-digital commerce model that neither company could achieve as easily on its own.
However, the partnership idea remains unconfirmed. GameStop is reportedly still weighing its options, meaning the $55.5 billion acquisition proposal has not necessarily been formally withdrawn and no joint venture has been announced.
For investors, the strategic shift could actually reduce some of the biggest risks associated with the original transaction. A full acquisition would have required enormous financing, substantial stock issuance, integration of two very different businesses and significant regulatory and execution work. A partnership could potentially achieve some strategic objectives while preserving GameStop’s balance sheet.
The key question is therefore no longer simply whether GameStop can buy eBay.
It is whether GameStop can gain the strategic benefits it wants from eBay without actually owning the company.
If Cohen succeeds in turning GameStop’s retail network, eBay’s marketplace and their shared interest in collectibles into a commercial partnership, the result could be a much smaller but potentially more practical version of the original $55.5 billion acquisition thesis.
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