New Delhi, May 4 -- Video game retailer GameStop saw its share price drop 6.5% in Monday's trade, 4 May, reaching a day's low of $24.80 on the NYSE, after the company proposed buying e-commerce giant eBay for $55.5 billion, reversing sharp gains in recent sessions.

The unprecedented takeover bid by the much larger eBay drew scepticism from investors and analysts on Monday, triggering a wave of selling spree right after the opening bell. While the prospect of a buyout deal has sent eBay shares higher by 7%, reaching the day's high of $111.

The nearly $12 billion video-game retailer, popular among meme-stock traders, is attempting a half-cash, half-stock buyout of a company with a market value nearly four times its own, using just around ...