GameStop Corp. (NYSE:GME) CEO Ryan Cohen is considering withdrawing the videogame retailer’s $56 billion bid for eBay Inc. (NASDAQ:EBAY), Bloomberg reported on Monday, citing people familiar with the matter.
Eyes eBay Partnership Instead Of $56 Billion Buyout
Cohen is considering a proposal that would allow eBay to leverage GameStop’s roughly 1,600 U.S. retail locations. The arrangement could help both companies expand market share in higher-margin categories such as trading cards and collectibles, according to the report.
GameStop and eBay did not immediately respond to Benzinga’s request for comment.
History Of The $56 Billion Acquisition Offer
GameStop submitted a non-binding proposal on May 3 to acquire all outstanding eBay stock for $125 per share in a cash-and-stock deal. eBay’s board rejected the offer, calling it “neither credible nor attractive.” Despite the rejection, GameStop disclosed in a regulatory filing that it built a 9.8% stake, holding 43.4 million eBay shares.
Cohen’s eBay Remarks And GameStop Filings
During an interview with Bloomberg TV, Cohen previously declined to comment on whether GameStop planned to raise its offer, stating, “I’m not going to negotiate against myself.”
Cohen added, “I’m not going to call my shots, but we’re coming for eBay one way or another,” stating he would take the plan directly to stockholders.
In a regulatory filing, GameStop stated its “leadership team remains focused on advancing the proposed acquisition of eBay” and noted that “additional materials regarding the proposed transaction are forthcoming.”
GameStop maintains a market capitalization of about $8.59 billion, compared to eBay’s market capitalization of about $49.83 billion.
Price Action: eBay shares were trading down 3.63% at $107.92, and GameStop shares were trading up 0.84% at $19.33 at the time of publication on Monday, according to Benzinga Pro data.
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