GameStop CEO forfeits $35 billion pay, eyes eBay bid

GameStop CEO Ryan Cohen announced on Tuesday that the board has rescinded a proposed bonus plan that could have awarded him up to $35 billion if certain performance goals were met.

Cohen pulls $35 billion bonus plan amid eBay acquisition push

The decision comes as Cohen reiterates his intention to pursue a takeover of eBay, the online marketplace valued at roughly $56 billion in his initial bid.

When the plan was first revealed in January, one of its key triggers was lifting GameStop’s market capitalization to $100 billion. That target would have required a dramatic rise from the retailer’s current valuation of about $10 billion, a leap many analysts deemed unlikely.

In a statement, the company said the move reflects “leadership fully focused on GameStop’s operating performance and its proposed eBay acquisition.” The board’s approval of the withdrawal was described as a response to shareholder concerns that the payout was tied to the merger itself.

GameStop had previously disclosed a $20 billion financing letter from TD Bank to support the eBay offer, but it did not clarify how the remaining funding gap would be covered. Cohen told the outlet that the deal would involve a mix of cash and stock, with “the ability to issue stock in order to get the deal done.”

Shares fell about 10 percent.

Industry observers noted the removal of the payout as a signal that Cohen is not seeking personal gain from the deal. Eden Chen, former venture scout and CEO of FirstLook, said eliminating the bonus “removes the concern that he wants to do the deal as a way to get his bonus.” She added that the core question remains: how can a company of GameStop’s size acquire a firm valued at five times its worth?

The retailer has not yet released a detailed presentation outlining the strategic rationale for the eBay acquisition, but it plans to do so later this week.

eBay, founded in 1995, is undergoing its own transformation, focusing on categories such as trading cards, auto parts and collectibles. Investors have responded positively, with the stock up roughly 25 percent this year after a strong rally in 2025. Analysts gave eBay an “outperform” rating, citing momentum in its narrowed focus.

In its May response to Cohen’s bid, eBay’s board emphasized confidence in its current management and highlighted “meaningful results” delivered over recent years. The board also cited financing uncertainty, operational risks and leadership concerns as reasons for rejecting the proposal.

Sky Canaves, a principal analyst at eMarketer, said Cohen “has yet to address these concerns in a meaningful way.” The analyst pointed to the lack of a clear financing plan as a major obstacle.

Cohen, who co‑founded Chewy before joining GameStop, defended his proposal in a recent podcast episode. “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,” he said.

GameStop has not responded to requests for additional comment on the matter.