WHAT HAPPENED
E-commerceGameStop CEO Ryan Cohen is considering withdrawing the videogame retailer’s $56 billion bid for Ebay and may instead pursue a partnership or joint venture with the e-commerce company,Bloomberg Newsreported on Monday, citing people familiar with the matter. Cohen is considering a proposal that would allow Ebay to leverage GameStop’s roughly 1600 US 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,Bloombergreported. The latest shift comes afterEbay rejected GameStop’s unsolicited takeover proposal in May, saying the offer was “neither credible nor attractive. ”The original bid was met with skepticism from investors and analysts, given that the much smaller GameStop was attempting to acquire a company worth nearly six times its own market value.
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