GameStop may pull $56 billion eBay bid, eyes partnership - report

Investing.com -- GameStop Corp. is considering withdrawing its $56 billion bid for eBay Inc., according to a Bloomberg report Monday.

Chief Executive Officer Ryan Cohen is said to be weighing a proposal for a partnership or joint venture that would allow eBay to use GameStop's approximately 1,600 US retail locations. The arrangement could help both companies expand market share in high-margin categories including trading cards and collectibles.

GameStop, which ranks among eBay's largest shareholders, would pursue board representation as part of any partnership.

GameStop's stock has dropped 28% since making its offer in May, while eBay's shares have risen 7.6%. The $125-per-share offer consisted of equal parts cash and GameStop common stock.

EBay's shares closed Friday at $111.98, representing a market value of $49.8 billion. When including debt, the company is valued at nearly $54 billion.

GameStop has not reached a final decision and Cohen may still consider other options, the report added.

The takeover bid followed GameStop's accumulation of a 5% stake in the larger ecommerce company. GameStop continued purchasing shares and, as of July 15, held 9.75% of eBay, making it the company's second-largest shareholder behind Vanguard Group Inc. funds.

EBay shares fell roughly 0.6% in pre-market trading Monday, while GameStop shares rose 1.4%.

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