GameStop CEO Drops $35B Award to Drive $125-Per-Share eBay Offer
EBAY•GameStop CEO Ryan Cohen withdrew a $35 billion performance award requiring a $100 billion market cap and $10 billion cumulative EBITDA to concentrate on the proposed acquisition of eBay. Cohen’s $125-per-share cash-and-stock bid faces skepticism after eBay’s board rejected it as not credible or attractive, with market odds for deal completion at 14%.
1. Award Withdrawal
GameStop CEO Ryan Cohen requested removal of his performance award worth up to $35 billion from the proxy statement, eliminating vesting conditions tied to a $100 billion market cap and $10 billion cumulative EBITDA to concentrate leadership on the eBay acquisition effort.
2. Acquisition Bid Terms
The proposed offer values eBay at $125 per share through a combination of cash and GameStop stock. These terms briefly reignited meme stock interest but have yet to secure eBay board support.
3. Board Reaction and Market Response
eBay’s board rejected the proposal as not credible or attractive, and market-based platforms price completion probabilities at about 14%. GameStop’s xStock digital share trading platform saw a modest 0.64% price uptick.
4. Strategic Vision
Cohen envisions a combined marketplace enabling transactions of in-game assets as real-world tradable goods, leveraging eBay’s scale, seller network, and payment infrastructure. GameStop will provide a strategic rationale and financing plan ahead of the July 7 shareholder meeting.
