industry

GameStop weighs ditching $56B eBay takeover, shifts toward partnership on collectibles

eBay rejected GameStop's $56 billion takeover offer and called it "neither credible nor attractive," prompting GameStop CEO Ryan Cohen to consider abandoning the bid and pursuing a partnership to jointly sell collectibles and digital in-game items. GameStop holds a 9.8% stake in eBay and originally offered $125 per share payable 50% in cash and 50% in GameStop stock. Cohen outlined financing that included $20 billion of potential debt from TD Bank, $9 billion in company cash, and outside investors such as Middle East sovereign wealth funds. The change matters because GameStop’s market value is about $12 billion versus eBay’s roughly $54 billion, making a full acquisition complex and a partnership a materially different path to expand collectibles and digital-item commerce.

• eBay rejected GameStop’s $56 billion takeover offer and described the proposal as "neither credible nor attractive."
• Ryan Cohen is considering replacing the acquisition attempt with a partnership to sell physical collectibles like trading cards and digital in-game items via eBay.
• GameStop currently owns a 9.8% stake in eBay; the original bid offered $125 per eBay share split 50% cash / 50% GameStop stock.
• Cohen cited a financing plan that included $20 billion of debt from TD Bank, $9 billion in GameStop cash, and additional funds from outside investors including Middle East sovereign wealth funds; GameStop scrapped a potential $35 billion personal pay package tied to the deal.