In May, GameStop CEO Ryan Cohen surprised the masses after announcing an unsolicited offer to buy eBay for nearly $56 billion—a deal that eBay’s board rejected and called “neither credible nor attractive.”
In an interview with CNBC last month, Cohen provided little context about how the cash and stock deal would materialize.
Between the company’s $11 billion market capitalization, $9 billion cash reserves, and $20 billion financing confidence letter received from TD Securities, GameStop was still nearly $16 billion short of its $56 billion offer. Since then, GameStop’s market cap has declined to $9.6 billion, while eBay currently sits at nearly $49 billion.
Now, GameStop announced that Cohen will not receive a potential performance award of $35 billion. Unveiled in January, the compensation package was contingent on him boosting the company’s market value and increasing profit. A press release from GameStop said that Cohen requested that the performance award be removed.
“Mr. Cohen stated that he wants leadership fully focused on GameStop’s operating performance and its proposed eBay acquisition,” the press release said.
Cohen doesn’t seem deterred by the commerce platform’s rejection. The company also mentioned plans to release more details of its proposition to buy eBay.
“GameStop will release additional materials regarding its proposed acquisition of eBay this week, including a detailed presentation of the strategic rationale and operational plan for the combined company,” the release said.
Cohen has gotten creative in his quest to acquire eBay. In an X post from May, Cohen said that he was “selling stuff on eBay to pay for eBay.” He listed trading cards, a $9,000 first-gen Apple iPhone, and other collectibles, with each listing including a signed copy of Cohen’s deal proposal to eBay.
Cohen joined GameStop’s board in 2021 and became CEO in 2023. Under Cohen’s leadership, GameStop aggressively cut its operational expenses by closing hundreds of stores, and the company returned to profitability.
Earlier this month, the company disclosed a 14% rise in quarterly revenue, and its net sales were $835 million, compared with $732 million during last year’s first quarter.