Business

GameStop CEO drops $35 billion bonus to chase eBay deal

GameStop made an offer to eBay in May, which was rejected. ©Image Credit: Wikicommons / Steven Arnold

GameStop is going all in on its quest to purchase all the outstanding eBay common stock. The plan is to use cash and GameStop common stock to make the acquisition, all while putting its controversial $35 billion performance-based pay package on hold.

CEO is serious about the acquisition

Not only is GameStop Chairman and CEO Ryan Cohen intent on acquiring eBay, but he is also so serious that he's taken the $35 billion proposed compensation package off the table.

This move allows the company to focus on "revitalizing GameStop's business and acquiring eBay," according to GameStop's press release.

The plan is to purchase the stocks for $125 per share.

GameStop made an offer to eBay before - and it was rejected

What makes the move even more eye-popping is that the online marketplace has a market value of $48 billion, which is five times larger than GameStop. Cohen made a cash-and-stock offer in May, but eBay rejected it.

eBay's Board of Directors called the offer "neither credible nor attractive." eBay Chairman Paul Pressler cited concerns regarding GameStop's financing mechanics, long-term growth viability, and the proposed leadership structure.

Cohen has said he may launch a hostile proxy fight and take his offer directly to eBay's shareholders if their board refuses to negotiate.

Cohen has big plans

Why the big push to acquire eBay? Cohen has said he sees an opportunity to cut "eBay's bloated costs to make it a big player in live commerce." He plans to use GameStop's brick-and-mortar locations across the U.S. to fulfill orders.

He also wants to create studios for content creators, allowing the company to expand into the digital collectibles marketplace.

A space to watch

Despite having an offer rejected and what appears to be a dead end, Cohen doesn't seem to be giving up. It will be an interesting space to watch with GameStop's Annual Meeting of Stockholders taking place on July 7, 2026.

Sources: Bloomberg, Business Insider, Yahoo! Finance

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