GameStop weighs eBay partnership as $55.5bn takeover bid falters
The $55.5bn takeover approach for eBay (EBAY) appears to be giving way to a partnership arrangement, with GameStop (GME) examining a joint venture option after eBay's board called its unsolicited May offer "neither…
Key takeaways
- GameStop is examining a joint venture with eBay after eBay's board rejected its unsolicited $55.5bn (May) takeover offer as 'neither credible nor attractive,' according to Bloomberg.
- GameStop's stake in eBay reached 9.75% as of 15 July, making it eBay's second-largest shareholder behind Vanguard Group funds.
- The original May bid was $125 per share as a cash-and-stock offer, which eBay rejected the same month.
- One partnership structure would use GameStop's network of 1,600 US stores to expand in higher-margin categories like trading cards and collectibles, and GameStop would seek board representation at eBay.
- No final decision has been made, and CEO Ryan Cohen could still pursue other options.
The $55.5bn takeover approach for eBay (EBAY) appears to be giving way to a partnership arrangement, with GameStop (GME) examining a joint venture option after eBay's board called its unsolicited May offer "neither credible nor attractive," Bloomberg reported citing unnamed sources. CEO Ryan Cohen has continued accumulating eBay shares in the interim, bringing GameStop's stake to 9.75% as of 15 July and making it the e-commerce platform's second-largest shareholder behind Vanguard Group funds. The next milestone: board representation at eBay, which sources say GameStop would seek as part of any cooperative deal.
The partnership option in focus
One structure under consideration would have GameStop and eBay working together to expand presence in higher-margin categories including trading cards and collectibles, using GameStop's network of 1,600 US stores. The original May offer came in at $125 per share, framed as a cash-and-stock bid. eBay rejected it the same month. No final decision has been made, the sources said, and Cohen could still pursue other options.
The most prominent public signal against the original deal came from Scion Asset Management's Michael Burry, who disclosed that he exited his entire GameStop position following the bid announcement, citing concerns about the level of debt GameStop might need to take on to fund the acquisition.
The numbers
eBay's second-quarter 2026 results give context to what GameStop was bidding for. Revenue came in at $3.13bn, up 15% year-on-year on a reported basis and 14% adjusted for currency effects. Gross merchandise volume for the three months to 30 June 2026 reached $22.39bn, also up 15%, or 14% on an FX-neutral basis.
GameStop's own first-quarter print, for the period ended 2 May 2026, showed net sales of $835.3m compared with $732.4m a year earlier. Net income reached $389.6m, up sharply from $44.8m in the same quarter of the prior year. Part of that improvement reflected an unrealised gain of $268.4m on a derivative asset linked to put and call option transactions tied to eBay's common stock.
What to watch
The next confirmable event is whether Cohen converts the accumulated 9.75% holding into board representation or presses forward with a revised deal structure. Sources told Bloomberg no final decision has been made. Before the original bid, GameStop had already built a 5% stake in eBay and has continued adding shares since.
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Filed via finance.yahoo.com