GameStop Considers Withdrawing 56 Billion Dollar eBay Bid

GameStop Corp. is considering withdrawing its 56 billion dollar bid to acquire eBay Inc., according to sources familiar with the matter. The original offer, made in May, proposed 125 dollars per share split equally between cash and GameStop common stock.

Chief Executive Officer Ryan Cohen may instead propose a partnership or joint venture. This alternative arrangement would allow eBay to use GameStop's approximately 1,600 U.S. retail locations to expand its market share in trading cards and collectibles. Under such a deal, GameStop would seek representation on the eBay board of directors.

Financial shifts since the May bid have complicated the acquisition. GameStop's stock has declined 28%, bringing its market value down to 8.6 billion dollars, while eBay's stock has risen 7.6%. GameStop currently holds a 9.75% stake in eBay and maintains 8.4 billion dollars in cash.