GameStop CEO Ryan Cohen Forgoes $35 Billion Pay Package Amid eBay Pursuit

GameStop billionaire chief Ryan Cohen will not get a pay package valued at approximately $35 billion tied to performance as he moves ahead with plans to restructure the gaming retailer, and its proposed acquisition of eBay.

GameStop announced the compensation plan in January. The agreement was tied to performance goals to boost the company’s market capitalisation more than tenfold and materially enhance profitability.

Cohen surprised investors in May by making an unsolicited offer to buy eBay in a $56 billion cash-and-stock deal. The plan was for a much larger e-commerce marketplace that could take on Amazon more aggressively. The offer was rejected by eBay and board directors characterised it as neither credible nor attractive.

Currently, the market value of GameStop is nearly $10 billion, while eBay is five times larger in valuation. 

GameStop Prepares Detailed eBay Proposal

GameStop said it would put out further materials this week detailing its plans for eBay. It will outline the strategic rationale for the deal and how a combined business would work.

The news comes with rumours on Wall Street about whether Cohen will follow through after the eBay rejection with an offer for the company.

Background

Cohen served as a board member of GameStop in 2021 and took on the role of chief executive in 2023. He has transformed the retailer, implementing extreme cost reductions and closed hundreds of stores.

GameStop revealed a 14% quarterly revenue rise this month due to the popularity of collectibles. The board also announced a new, $2 billion share buyback program. Net sales were $835.3 million for the quarter ended May 2, compared to net sales of $732.4 million last year.

Source: Reuters

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