GameStop (NYSE: GME) is weighing a potential partnership or joint venture with eBay (NASDAQ: EBAY) after its ambitious $55.5 billion takeover bid ran into significant resistance from the e-commerce giant’s board.
Bloomberg reported, citing unnamed sources, that the video game retailer is now considering alternatives to the outright acquisition it proposed earlier this year.
CEO Ryan Cohen led the charge on an unsolicited, non-binding offer made in May to acquire eBay in a cash-and-stock deal valued at $55.5 billion, or $125 per share.
eBay’s board moved swiftly to reject the proposal that same month, dismissing it as “neither credible nor attractive” in a pointed rebuff of Cohen’s overtures.
One option now under examination would see GameStop and eBay collaborate to expand market share in higher-margin product categories, including trading cards and collectibles.
Such a partnership would leverage GameStop’s existing network of 1,600 US stores, giving eBay a significant physical retail presence to complement its online marketplace.
As part of any potential arrangement, GameStop would seek board representation at eBay, reflecting its growing position as one of the company’s largest shareholders.
Before launching the takeover proposal, GameStop had accumulated a 5% stake in eBay and has since continued to build its holding substantially.
As of July 15, GameStop owned 9.75% of eBay, making it the second-largest shareholder behind funds managed by Vanguard Group.
The sources who spoke to Bloomberg stressed that no final decision has been made, and that Cohen could still consider other strategic options beyond a partnership structure.
Prominent investor Michael Burry, head of Scion Asset Management, disclosed that he exited his entire position in GameStop following the eBay bid announcement, citing concerns over the level of debt GameStop might need to take on to fund such a large acquisition.
Burry’s exit underscored broader market skepticism about the financial viability of an outright takeover at the proposed valuation, adding pressure on Cohen to recalibrate his approach.
On the operational side, eBay posted second-quarter 2026 revenue of $3.13 billion, representing a 15% rise year-on-year on a reported basis, or 14% when adjusted for currency effects.
That revenue performance signals a business in solid health, potentially making eBay more receptive to a collaborative arrangement that stops short of a full acquisition.
