GameStop CEO turned down $35 billion for eBay: a signal for the market or a risky move?
GameStop (NYSE: GME) CEO Ryan Cohen made an unexpected and bold move: he asked the board of directors to withdraw the vote on his potential compensation, which could have reached $35 billion if all conditions were met. This decision, in my view, demonstrates not just altruism but strategic calculation — Cohen intends to focus the entire team's energy on a single goal: acquiring eBay.
The board of directors approved this compensation back in January 2026, before GameStop announced plans to buy eBay. Now, at Cohen's request, the board has agreed to withdraw it, and the company has filed an additional notice of changes with the SEC. Giving up a multi-billion-dollar payout sends a powerful signal to the market: GameStop's future is now directly tied to the potential acquisition of eBay.
The Conditions That Were Rejected
Initially, the compensation was tied to two ambitious targets: growing GameStop's market capitalization to $100 billion and achieving total EBITDA (earnings before interest, taxes, depreciation, and amortization) of $10 billion. By giving up the payout in advance, Cohen removes potential corporate governance concerns ahead of the annual shareholder meeting scheduled for July 7. This is a classic move to strengthen investor confidence at a critical moment.
Cohen stated that the company must be "fully focused" on efficiency and the eBay deal. GameStop has promised to announce new data this week, revealing the strategic rationale for the deal, financing details, and a management plan for the combined company.
Market Reaction and Prospects
After GameStop announced its intention to buy eBay at $125 per share, paying with cash and its own stock, the company's shares briefly attracted increased interest from meme coin enthusiasts. However, eBay's board of directors called the offer "neither compelling nor attractive" and rejected it. Cohen, in turn, continued to apply pressure: he openly criticized eBay's $2.4 billion marketing spend and pointed out the platform's inconvenience. In response, eBay blocked Cohen's trading profile in May, turning the corporate dispute into a public spectacle.
Cohen envisions the future combined company as a digital marketplace for trading gaming items, where in-game assets like skins become full-fledged goods with real value. The project targets the fast-growing secondary trading market, which remains largely closed to outside buyers. To realize this idea, eBay's scale, seller network, and payment infrastructure are needed.
On Polymarket, the probability of the deal closing is estimated at just 14% — market participants largely do not believe eBay's board will sit down at the negotiating table. Meanwhile, GameStop xStock (GMEX) is trading at $21.16, up 0.64% over the past day.
GameStop's presentation this week will be the clearest signal: whether the bid to buy eBay will lead to a deal agreement. Personally, I believe giving up $35 billion is a strong but risky move. If the deal falls through, Cohen will be left without the compensation and in a weakened position. However, if he manages to turn the tide, we will witness one of the boldest transformations in retail.