Ryan Cohen turns down $35 billion for eBay: a signal to the market or a strategic move?
GameStop (NYSE: GME) CEO Ryan Cohen has made an unprecedented decision—he has withdrawn his potential bonus of up to $35 billion to fully focus on the acquisition deal with eBay. This move demonstrates not only personal humility but also a strategic reorientation of the company.
The board of directors approved this bonus in January 2026, before GameStop announced plans to buy eBay. Key conditions for the payout were GameStop's market capitalization reaching $100 billion and achieving a total EBITDA of $10 billion. However, Cohen asked the board to remove this item from the vote, and his request was granted. The company has already filed an additional notice of changes with the SEC.
Waiving such a significant amount removes potential corporate governance concerns ahead of the annual shareholder meeting scheduled for July 7. Cohen stated that the company should be "fully focused" on efficiency and the eBay deal. In the near future, GameStop promises to disclose the strategic rationale for the deal, financing details, and a management plan for the combined company.
The Battle for eBay: A Bet on the Future
To recap, GameStop offered to buy eBay at $125 per share, paid in cash and its own stock. eBay's board of directors called the offer "unconvincing" and rejected it. Cohen, in turn, publicly criticized eBay's $2.4 billion marketing expenses and pointed out the platform's inconvenience. In response, eBay blocked Cohen's trading profile in May, bringing the corporate dispute into the public sphere.
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. To realize this ambitious idea, eBay's scale, seller network, and payment infrastructure are necessary.
The market, however, is skeptical. On Polymarket, the probability of the deal closing is estimated at just 14%. Investors do not believe eBay's board will come to the negotiating table. Meanwhile, GameStop shares are trading at $21.16, up 0.64% for the day.
My analysis: Cohen's decision is a powerful signal to the market of his confidence in the deal. Waiving $35 billion is not just a gesture but a demonstration that he prioritizes long-term strategy over personal gain. However, given the low probability of approval from eBay, this move could be either a brilliant play or a costly mistake. GameStop's presentation this week will be a decisive moment: it will either convince the market of the synergy or finally bury the deal.