GameStop is considering dropping its $55.5bn takeover approach for eBay and looking at a partnership or joint venture instead, Bloomberg reported, citing unnamed sources.
Led by CEO Ryan Cohen, the video game retailer made an unsolicited, non-binding offer in May to acquire eBay in a cash-and-stock deal worth $55.5bn, or $125 per share.
eBay’s board rejected the proposal in the same month, calling it “neither credible nor attractive”.
According to the report, one option being examined would involve GameStop and eBay working together to expand market share in higher-margin categories including trading cards and collectibles, using GameStop’s network of 1,600 US stores.
As part of any such arrangement, GameStop would seek board representation at eBay, the sources said, reflecting its position as one of eBay’s largest shareholders.
The sources also said no final decision has been made and that Cohen could still consider other options.
Before making its takeover proposal, GameStop had accumulated a 5% stake in eBay and has continued increasing its holding.
As of 15 July, it owned 9.75% of eBay, making it the second-largest shareholder after funds managed by Vanguard Group, according to the report.
Scion Asset Management head Michael Burry disclosed that he exited his entire position in GameStop following the eBay bid announcement, pointing to worries over the level of debt GameStop might need to take on to fund the acquisition.
eBay posted second-quarter 2026 revenue of $3.13bn, marking a 15% rise year-on-year on a reported basis, or 14% when adjusted for currency effects.
Gross merchandise volume for the three months to 30 June 2026 climbed 15% to $22.39bn, or 14% on an FX-neutral basis.
GameStop, meanwhile, reported net sales of $835.3m for the first quarter that ended 2 May 2026, up from $732.4m in the corresponding period a year earlier.
During the three months, net income jumped to $389.6m, a sharp rise from $44.8m the previous year, aided in part by an unrealised gain of $268.4m on a derivative asset linked to put and call option transactions tied to eBay's common stock.
