Key facts
- GameStop CEO Ryan Cohen has withdrawn his proposed $35 billion performance award.
- The award was contingent on GameStop reaching a $100 billion market capitalization and $10 billion in adjusted profits.
- Cohen is prioritizing the potential acquisition of eBay and has reiterated his interest in the deal.
- Cohen stated he would personally invest $500 million in the acquisition to demonstrate conviction.
- Michael Burry had previously sold his GameStop stake, citing skepticism about the eBay acquisition and Cohen's compensation structure.
GameStop CEO Ryan Cohen has withdrawn his proposed performance award, valued at over $35 billion, to fully concentrate on his pursuit of acquiring eBay. The decision comes as GameStop shifts its focus towards a potential takeover of the online marketplace, which has a market value significantly larger than GameStop itself.
Cohen's compensation package, which was set to be voted on by shareholders, included 171.5 million share options contingent on GameStop achieving a $100 billion market capitalization and $10 billion in adjusted profits. He has expressed strong conviction in the potential acquisition, stating he would personally invest $500 million into the deal and highlighting opportunities for cost-cutting and expansion into live commerce and digital collectibles.
Despite eBay's previous rejection of Cohen's cash-and-stock offer and skepticism from investors like Michael Burry, who sold his GameStop stake citing concerns about the deal's dilutive nature and Cohen's motivations, Cohen remains determined. GameStop indicated it would provide further details on its eBay acquisition plans this week. The company also noted that Cohen's performance hurdles would be adjusted in the event of a stock-based acquisition, meaning he would not receive a windfall solely for acquiring eBay.