The news: GameStop could withdraw its $56 billion bid for eBay in favor of a partnership or joint venture that would give eBay access to the game retailer’s roughly 1,600 US stores, according to Bloomberg. Such a deal would—in theory—help both companies increase their share in trading cards and collectibles, two high-margin and fast-growing categories for each retailer.

How we got here: From the beginning, GameStop CEO Ryan Cohen’s play for eBay looked like a long shot. While Cohen claimed that combining forces would lay the groundwork for a $1 trillion business—and that GameStop had the ability to purchase a business worth four times its market valuation—eBay dismissed the offer as “neither credible nor attractive.”

Softening the terms of the deal is unlikely to sway eBay. The online marketplace is growing on its own: Both revenues and gross merchandise volumes rose 14% in Q2, while operating income increased 16%. It’s unclear what benefits eBay would gain from access to GameStop’s shrinking physical footprint, given its focus on peer-to-peer sales and prioritization of ecommerce initiatives such as live selling and its Depop acquisition.

Implications for retail: Synergistic partnerships, such as the one between Best Buy and Ikea, can unlock significant value for retailers, especially in a strained environment. But the two companies have to complement each other in ways that are evident to shoppers, management, and shareholders—something GameStop has yet to demonstrate in its bid for eBay.

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