GameStop Reconsiders $56 Billion eBay Bid After Rejection and Financing Concerns

GameStop is considering withdrawing its $56 billion proposal to acquire eBay, according to Bloomberg and reports republished by PYMNTS and Finance.yahoo. CEO Ryan Cohen is weighing a partnership or joint venture instead of continuing the unsolicited takeover effort, which eBay rejected in May.

The shift follows a turbulent sequence. GameStop made the cash-and-stock offer for eBay on May 3, according to Time, while eBay later called the proposal “neither credible nor attractive,” as reported by Forbes and Wsbtv. The latest reports describe a strategic rethink, not a completed withdrawal, so the bid’s formal status remains unresolved.

EBay’s board rejected GameStop’s proposal after reviewing it with financial and legal advisers, according to Wsbtv and the company announcement cited in that report. Forbes characterized the rejection in similar terms, while The Wall Street Journal’s coverage also reported that eBay rejected the $56 billion bid and that GameStop shares fell.

The size and structure of the proposal drove much of the skepticism. Time reported that GameStop was seeking to buy a company worth roughly 4 times as much, with limited financing details disclosed. Reuters, through Finance.yahoo, said the bid raised financing doubts among investors. Those concerns made the offer difficult to advance even before eBay’s board closed the door.

Ryan Cohen’s alternative would connect eBay with GameStop’s roughly 1,600 U.S. retail locations, according to Reuters’ report carried by Finance.yahoo. Bloomberg’s reporting describes the concept as a partnership or joint venture designed to let eBay use GameStop’s physical footprint rather than requiring a full corporate combination.

That structure would address a central weakness in the original transaction: acquiring eBay would require GameStop to finance and integrate a much larger e-commerce company. A commercial arrangement would preserve separate ownership while testing whether GameStop’s stores can support eBay’s market-share goals in higher-growth areas. PYMNTS and Bloomberg both report that Cohen is considering this path, but neither describes a signed agreement or formal proposal.

Investors have treated the bid as a high-risk strategic move. Reuters reported that financing doubts were already weighing on sentiment, while The Wall Street Journal reported a decline in GameStop’s stock after eBay rejected the offer. The combination of an outsized target, uncertain funding and an unsolicited approach increased pressure on GameStop to explain how the transaction would work.

Time placed the episode in a broader pattern around Cohen’s leadership. The failed bid, swift rejection and thin financing detail might ordinarily create a deeper confidence crisis, but Cohen continued shaping the conversation after eBay’s decision. His comments helped drive activity on prediction markets including Kalshi and Polymarket, turning a corporate deal dispute into a public trading spectacle.

GameStop’s pursuit of eBay reflects Cohen’s effort to reposition the videogame retailer around commerce, collectibles and online marketplaces. NPR described the proposed transaction as an attempt by GameStop to acquire a major online auction platform, while Time emphasized the unusual mismatch between the companies’ sizes.

A partnership would offer a narrower test of that strategy. GameStop could put its stores, customer base and physical infrastructure behind eBay-related activity without assuming full control of eBay’s operations or liabilities. EBay, meanwhile, would retain independence and evaluate whether the retail network adds measurable value. The arrangement would still face questions over economics, governance and execution, and the reports provide no evidence that eBay has accepted the idea.

The immediate question is whether GameStop formally withdraws the bid, revises it or presents eBay with a partnership proposal. Bloomberg’s sources say Cohen is considering withdrawal, while the other reports describe the same possibility rather than a finalized decision. EBay’s prior rejection means any renewed transaction would require a major change in terms or structure.

For shareholders, the next concrete signals will be a GameStop filing, a board statement, financing details or direct confirmation from eBay. A partnership announcement would shift the story from takeover financing to commercial execution. Without one, the $56 billion proposal remains a rejected, non-binding bid that exposed the limits of GameStop’s acquisition ambitions.