Ryan Cohen donates $35 billion for eBay: new GameStop strategy
GameStop CEO Ryan Cohen has made an unprecedented decision: he asked the board of directors to withdraw the vote on his own compensation package, which could have reached an astronomical $35 billion if all KPIs were fully met. This is not an act of charity, but a clear strategic maneuver aimed at fully concentrating the company's resources on a potential acquisition of eBay.
The board of directors approved this compensation package back in January 2026, long before GameStop announced plans to acquire eBay. However, Cohen insisted on its withdrawal, and the company has already filed the corresponding notice with the SEC. The main conditions for the payout were GameStop's market capitalization reaching $100 billion and achieving a total EBITDA of $10 billion. By forgoing this money now, Cohen removes all potential questions about corporate governance ahead of the annual shareholders' meeting scheduled for July 7.
Cohen stated that the company must be "fully focused" on efficiency and the eBay deal. GameStop promises to announce new data this week, which will reveal the strategic rationale for the deal, financing details, and the management plan for the combined company. This is a critically important step, as eBay's board of directors has already called the initial offer of $125 per share "unconvincing and unattractive" and rejected it.
The conflict has moved into the public sphere: Cohen has 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. Nevertheless, Cohen sees the future of the combined company as a digital marketplace for trading gaming items, where in-game assets such as skins will become full-fledged goods with real value. To realize this ambitious idea, eBay's scale, its network of sellers, and its payment infrastructure are necessary.
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 (GMEX) shares are trading at $21.16, up 0.64% over the day.
My analysis: Cohen's rejection of $35 billion is a powerful signal to the market about his seriousness and willingness to see things through. However, Polymarket's skepticism shows that investors doubt GameStop's ability to overcome the resistance of eBay's board of directors. The presentation this week will be a decisive moment: if Cohen can convince shareholders of the synergy between the platforms, the chances of the deal will increase sharply. Otherwise, GameStop risks being left empty-handed with a tarnished reputation.