GameStop Reportedly Considers Dropping eBay Bid for New Partnership Offer
GameStop chief executive Ryan Cohen is reportedly weighing whether to abandon his hostile bid for eBay in favour of proposing a partnership or joint venture instead, according to Bloomberg. The shift would mark a significant change in strategy after months of GameStop publicly pursuing outright ownership of the online marketplace, and matters because it suggests Cohen may be struggling to gain traction with a straightforward takeover approach that eBay has repeatedly rebuffed.
Cohen launched his campaign in May 2026 with an unsolicited $55.5 billion offer at $125 per share, aiming to turn eBay into a genuine rival to Amazon; eBay rejected the bid within a week, calling it "neither credible nor attractive". Since then GameStop has raised its stake in eBay from roughly 5% to almost 10% and reportedly bumped its offer to around $56 billion, with Cohen insisting publicly that the company is "coming for eBay one way or another". Under the alternative partnership model now said to be under consideration, GameStop would give eBay access to its roughly 1,600 US stores and seek a seat on eBay's board, though GameStop is still said to be weighing multiple possible paths forward.
- GameStop may swap its $56bn eBay bid for a partnership proposal instead.
- eBay had rejected Cohen's takeover offer as "neither credible nor attractive".
- GameStop has raised its eBay stake to nearly 10% since May.
New here? Start with this
GameStop is best known for its video game shops, while eBay is an online marketplace where people and businesses buy and sell goods. GameStop chief executive Ryan Cohen has argued that eBay could become a stronger competitor to Amazon, the much larger online retailer.
Cohen began seeking to buy eBay in May 2026, but eBay rejected the offer. GameStop has since increased its shareholding in eBay, giving it a larger financial interest in the company.
The dispute matters because it concerns who will shape eBay’s future and how it might compete with Amazon. GameStop’s shops could also offer eBay a way to connect its online marketplace with physical retail.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Cohen's transformative vision for eBay as an Amazon rival requires full operational control to implement across the company's decision-making, technology, and strategy. A partnership with board representation would leave eBay's existing leadership substantially in place, potentially blocking the systemic changes necessary to realise the strategic opportunity. Full acquisition ensures aligned incentives and decisive action needed for genuine transformation.
The case against
eBay's repeated public rejection of GameStop's bids suggests little appetite for a hostile takeover that would prove costly and uncertain in execution. A partnership granting board representation and access to GameStop's 1,600 US stores could deliver significant synergies—customer access, distribution channels, operational improvements—whilst preserving business relationships and avoiding the substantial legal and opportunity costs of a contested acquisition. Pragmatic stewardship favours the collaborative approach where genuine value creation is achievable without the friction of a forced deal.