GameStop May Pull $56 Billion EBay Bid

Summary

GameStop Corp. is considering withdrawing its $56 billion bid for eBay and instead proposing a partnership that would leverage GameStop's 1,600 US retail locations. Bloomberg's Bailey Lipschultz discusses how the partnership could balance the prospects of both companies, though questions remain about eBay's need for physical locations. GameStop shares were nearly flat while eBay fell about 3% on the news.

• GameStop may pull its eBay acquisition bid and propose a partnership instead.
• The partnership would let eBay use GameStop's 1,600 US brick-and-mortar stores.
• The original bid went viral for the funding challenge of a company worth far less than eBay.
• Ryan Cohen has argued eBay needs new blood and a revival strategy.
• Market reaction: GameStop basically flat, eBay down about 3%.
• Doubt exists over whether an online marketplace like eBay benefits from physical locations.