Reports Indicate GameStop Has Canceled Its Planned Acquisition of eBay

GameStop is abandoning the idea of a complete $56 billion takeover of eBay as its own stock falls by nearly a third, considering a business partnership instead.

One of the largest acquisitions in the industry is in jeopardy. According to sources close to the situation, GameStop, led by Ryan Cohen, is abandoning the idea of buying eBay for $56 billion. Instead of a complete merger, the company is considering a business partnership or the creation of a joint venture.

The shift was caused by changes in the stock market. Following the May offer of $125 per share, GameStop’s capitalization fell by nearly a third, while eBay’s shares grew noticeably. The deal, which was to be paid half in cash and half in stock, was becoming increasingly difficult and raised concerns over a potential rise in debt.

The new option involves utilizing GameStop’s network of approximately 1,600 stores in the United States. The companies will be able to increase their market share in profitable collectible and trading card markets. GameStop, which owns nearly 10% of eBay’s shares, also wants to secure a seat on the board of directors.

No final decision has been made yet.