Investing.com -- Morgan Stanley has outlined four potential scenarios for the proposed deal between GameStop (NYSE: GME) and eBay (NASDAQ: EBAY), stating the saga is likely not over.

The first scenario involves GameStop raising its offer for eBay, though this would require additional financing or giving eBay shareholders a larger portion of the post-spin company.

The second possibility is GameStop taking the offer directly to eBay shareholders. The Wall Street Journal reported this as a possibility before the proposed deal was announced. Morgan Stanley said its investor conversations suggest eBay shareholders would likely reject the current proposal unless it included a larger premium and higher cash portion, which may be difficult without excess leverage.

A third scenario involves a failed proxy vote at GameStop. The company may need to increase its authorized shares to complete the proposed offer and is putting it to a shareholder vote. Sentiment on social media has been mixed about the proposal. If the vote fails, GameStop would need to find additional financing or withdraw its offer.

The fourth scenario involves another company making an offer for eBay now that a potential deal has been floated. Morgan Stanley noted it has no knowledge of a potential transaction.

GameStop has floated the direct proposal, but eBay has not commented.