Ryan Cohen declines a $35 billion premium to buy eBay: an analysis of GameStop's strategy
GameStop (NYSE: GME) CEO Ryan Cohen took an unprecedented step by asking the board of directors to withdraw his personal bonus from the vote. The potential payout, if all ambitious goals were met, could have reached $35 billion. Cohen stated that this decision would allow management to fully focus on the key task — the acquisition deal for eBay.
The board of directors approved the bonus back in January 2026, long before GameStop announced its plans to buy eBay. However, after the deal was announced, Cohen personally requested that this item be removed from the agenda. The board granted the request, and the company has already filed the corresponding supplement to the notice with the SEC (U.S. Securities and Exchange Commission). This decision sends a powerful signal to the market: GameStop's future is now directly tied to the potential acquisition of eBay.
The main conditions for the bonus payout were GameStop's market capitalization reaching $100 billion and achieving total EBITDA (earnings before interest, taxes, depreciation, and amortization) of $10 billion. By forgoing the compensation in advance, Cohen removes any potential questions about corporate governance ahead of the annual shareholder meeting, which will be held on July 7. This is a clean, impeccable move from a corporate ethics standpoint.
For the Deal — Turning Down Money
Cohen emphasized that the company must be "fully focused" on performance and the eBay deal. In the coming days, GameStop promises to disclose new data that will shed light on the strategic rationale for the deal, financing details, and the management plan for the combined company. "He wants the team to be completely focused on GameStop's performance and the offer to buy eBay," the official press release states.
As a reminder, GameStop offered to buy eBay at $125 per share, paid for with cash and its own stock. GameStop's securities briefly attracted heightened interest from meme coin enthusiasts, but eBay's board of directors called the offer "unconvincing and unattractive" and rejected it.
Cohen continued the 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, and the corporate dispute went public.
Platform Merger: What's Next?
Cohen sees the future of the combined company as a digital marketplace for trading gaming items, where in-game assets such as skins and weapons 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 only 14% — market participants largely do not believe that eBay's board of directors will sit down at the negotiating table. Meanwhile, GameStop shares (GMEX) are trading at $21.16, up 0.64% over the past day.
My analysis: Cohen's rejection of $35 billion is not just a goodwill gesture, but a strategic maneuver. He sheds the burden of suspicion regarding personal interest and shifts the focus solely to the deal. GameStop's presentation this week will be a decisive signal: can Cohen convince the market and eBay shareholders of the viability of his plan? If the deal falls through, this rejection will be just a nice story. If it goes through, it will go down in corporate finance textbooks.