GameStop CEO Ryan Cohen is reportedly considering withdrawing the company's unsolicited $56 billion bid for eBay and replacing it with a partnership or joint venture. Bloomberg reported on August 10 that Cohen is exploring a more limited approach that would let eBay expand in high-margin areas like trading cards and collectibles using GameStop's roughly 1,600 US retail locations, in exchange for one or two board seats. GameStop shares climbed 1.6% in early trade while eBay shares sank 2.2% following the report. GameStop's initial May offer of $125 per share in cash and stock was rejected by eBay's board as neither credible nor attractive, and GameStop has since built a 9.75% stake in eBay. GameStop has not yet made a final decision, and the potential partnership is only a fraction of the initial bid's ambition.
eBay IncGameStop considering scrapping $56B takeover for a partnership reduces the likelihood of a premium acquisition, causing eBay shares to fall.
GameStop Corp.GameStop's shift to a partnership approach is seen as less costly and more strategic, lifting its shares.
