GameStop Withdraws Ryan Cohen's $35 Billion Bonus Plan as He Presses $56 Billion eBay Bid
Updated
Updated · CNBC · Jun 25
GameStop Withdraws Ryan Cohen's $35 Billion Bonus Plan as He Presses $56 Billion eBay Bid
3 articles · Updated · CNBC · Jun 25
Summary
$35 billion in potential pay was scrapped after GameStop's board approved Ryan Cohen's request to withdraw the bonus plan ahead of a July 7 shareholder vote.
GameStop said the move lets leadership focus on operating performance and its proposed eBay acquisition, while also blunting criticism that a merger could help Cohen hit a $100 billion market-cap target tied to the package.
$56 billion is the size of Cohen's bid for eBay, but he still has not explained how GameStop—worth about $10 billion—would close the funding gap after citing a $20 billion TD Bank financing letter and hinting at $500 million of his own money.
eBay has already rejected the offer as not credible or attractive, pointing to financing uncertainty, operational risks and leadership concerns as its shares rise about 25% this year on confidence in its turnaround.