Aug 10 (Reuters) – GameStop CEO Ryan Cohen is considering withdrawing the company’s $56 billion bid for eBay in favor of a commercial partnership, Bloomberg News reported on Monday, citing people familiar with the matter.
Cohen is considering a proposal that would allow eBay to leverage GameStop’s roughly 1,600 U.S. retail locations, potentially helping both companies expand market share in higher-margin categories such as trading cards and collectibles, the report said.
As part of any partnership, GameStop would seek seats on eBay’s board, Bloomberg reported.
Ebay has a market capitalization nearly five times larger than GameStop, making the buyout bid an ambitious attempt.
GameStop did not immediately respond to a Reuters request for comment. EBay could not immediately be reached for comment.
In July, GameStop disclosed it had increased its stake in eBay to 9.8%, making it one of the e-commerce company’s largest shareholders, while Cohen vowed to pursue a deal “one way or another” after eBay rejected the videogame retailer’s unsolicited $56 billion takeover offer.
(Reporting by Rashika Singh in Bengaluru; Editing by Tasim Zahid)
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