Cohen abandons a $35 billion compensation package tied to GameStop stock to fund a rejected $55.5 billion bid for eBay.
Ryan Cohen is walking away from a $35 billion compensation package tied to GameStop’s stock performance to finance a $55.5 billion bid for eBay. The package, linked to a CEO Performance Award, would vest only if GameStop’s share price reached extraordinary levels, posing dilution risks for shareholders.
Cohen’s bid for eBay was rejected by the company’s board within eight days. Analysts, including Michael Burry and Steve Eisman, have dismissed the deal as improbable, with Polymarket assigning a 13% chance of success. The move removes a governance overhang but raises questions about Cohen’s strategy.
GameStop’s Q1 FY26 disclosure highlighted the potential dilution risk if Cohen’s stock options were exercised, signaling a shift in his focus toward the larger eBay acquisition.