Ryan Cohen turned down a $35 billion bonus to buy eBay: GameStop's new direction
GameStop CEO Ryan Cohen made an unprecedented decision: he asked the board of directors to revoke his personal bonus, which could have reached $35 billion if all KPIs were met. This move is not a gesture of modesty, but a strategic maneuver allowing management to fully focus on the key deal — the acquisition of eBay.
The board of directors approved the bonus program back in January 2026, long before GameStop announced plans to acquire eBay. However, now that the company's priorities have fundamentally changed, Cohen believed that discussing his compensation would only distract the team. As a result, the board granted the request, and GameStop filed a corresponding notice with the SEC. The waiver of the payment is a clear signal to the market: the company's future is now directly tied to the potential acquisition of eBay.
As a reminder, the key conditions for receiving the bonus were GameStop's market capitalization reaching $100 billion and achieving a combined EBITDA of $10 billion. By removing this issue from the agenda, Cohen eliminates potential corporate conflicts ahead of the annual shareholders' meeting scheduled for July 7.
Cohen Bets on eBay
Cohen stated that the company must be "fully focused" on efficiency and the eBay deal. GameStop has promised to release new data this week, including strategic justifications for the deal, financing details, and a management plan for the combined company.
After GameStop announced its intention to buy eBay at $125 per share, paid for 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 "unconvincing and unattractive" and rejected it.
Cohen continued to apply pressure throughout the campaign. He openly criticized eBay's $2.4 billion marketing spend and pointed out that the platform remains inconvenient to use. In response, eBay blocked Cohen's trading profile in May, and the corporate dispute went public.
What the Platform Merger Could Entail
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 is currently almost closed to outside buyers. Realizing this idea requires eBay's scale, its network of sellers, and its payment infrastructure.
On Polymarket, the probability of the deal closing is estimated at just 14% — market participants largely do not believe eBay's board of directors will sit down at the negotiating table. Meanwhile, GameStop (GMEX) shares are trading at $21.16, up 0.64% over the past day.
My expertise: Cohen's decision is a classic example of "burning bridges." He is betting everything on one card. If the eBay deal falls through, the bonus waiver could be perceived by investors as a sign of weakness, not strength. GameStop's presentation this week will be the clearest signal: will the bid to buy eBay lead to a deal agreement, or is this the beginning of the end of Cohen's ambitious plan?