Full Breakdown
Ryan Cohen Withdraws $35 Billion Pay Package to Focus on eBay Acquisition
6/25/2026, 1:16:59 AM
CEO Compensation Withdrawal and eBay Pursuit
On Tuesday, GameStop announced that CEO Ryan Cohen removed his $35 billion performance award from the proxy statement to focus on acquiring eBay, a $48 billion marketplace that rejected his cash-and-stock offer in May.
Background & Context
GameStop, once a brick-and-mortar video-game retailer, has pursued a transformative deal after the 2021 short-squeeze. Cohen, Chewy co-founder, proposes using GameStop’s ~1,600 U.S. stores for live-commerce and a digital-collectibles marketplace. His earlier plan tied a $35 billion payout to a $100 billion market cap and $10 billion adjusted profit.
Key Figures & Groups
- Ryan Cohen – GameStop CEO, Chewy co-founder.
- eBay Inc. – $48 billion online marketplace.
- Michael Burry – Investor who sold his GameStop stake and questioned the deal.
- GameStop Board – Approved removal of the CEO Performance Award.
- Piers Morgan – Interviewer on Cohen’s hostile-takeover stance.
Timeline of Recent Developments
- May 2024: eBay rejects Cohen’s cash-and-stock offer.
- June 19, 2024: Cohen tells Piers Morgan he will not rule out a hostile takeover.
- June 25, 2024: GameStop press release announces removal of the CEO Performance Award.
- July 7, 2024: Shareholders to vote on the original compensation package.
Data & Statistics
Proposed payout: >$35 billion (171.5 million share options). Target market cap: $100 billion; adjusted profit: $10 billion. eBay value: $48 billion. GameStop stores: ~1,600 U.S. locations. Cohen’s personal stake: $500 million.
Official Statements & Responses
GameStop’s press release said Cohen removed the CEO Performance Award to concentrate on revitalizing the business and pursuing eBay. The filing notes performance hurdles will be adjusted for a stock-based acquisition, averting a windfall solely from the deal. Neither GameStop nor eBay offered further comment.
Criticism & Opposition
Investor Michael Burry sold his GameStop stake in early May, questioning the eBay deal and suggesting it mainly serves Cohen’s compensation targets. The pending July 7 vote on the $35 billion package has raised concerns about dilution and governance.
Why It Matters
A successful merger would turn GameStop’s stores into fulfillment hubs and live-commerce studios, and launch a digital-collectibles marketplace. The combined firm could lower eBay’s costs and alter competition in online retail and emerging metaverse commerce.
Conflicting Reports & Gaps
GameStop says performance hurdles will be revised but does not detail the new metrics. eBay has not responded, leaving uncertainty about a possible hostile bid and regulatory review.
Verbatim Quotes
- “When you look at how much the businesses together make sense, and then you look at the fact that it's within my circle of competence, I can't stop thinking about it,” — Ryan Cohen, GameStop CEO
What’s Next
GameStop will publish a detailed strategic rationale and integration plan for the eBay acquisition within the week, per its filing. The upcoming shareholder vote and any hostile approach will shape the finalization timeline.
