GAMESTOP CEO COHEN WITHDRAWS $35 BILLION BONUS PLAN

GameStop's board approved a request from Ryan Cohen to withdraw a proposed bonus package that could have paid him up to $35 billion upon meeting certain performance targets. Cohen cited a desire to focus on his effort to acquire eBay as the reason for withdrawing the plan. The decision marks the first significant update on GameStop's pursuit of eBay since May, when Cohen unveiled a $56 billion offer for the e-commerce company. eBay's board rejected that proposal, describing it as "neither credible nor attractive."

GameStop's market capitalisation stands at approximately $10 billion, creating a significant gap to fund a $56 billion acquisition of eBay. The company previously stated it had secured a $20 billion financing letter from TD Bank, leaving a substantial funding shortfall unaddressed. Cohen announced the acquisition would involve half cash and half stock, with what he described as "the ability to issue stock in order to get the deal done." GameStop's share price fell 10 per cent on the day the eBay bid was announced and has continued downward since.

The original bonus plan, announced in January, required GameStop's market capitalisation to reach $100 billion as one condition for Cohen to receive the full payout. Eden Chen, CEO of gaming software company FirstLook, has questioned how a $10 billion company could acquire a $50 billion company, framing a core challenge facing Cohen's proposal. No timeline for further developments regarding the eBay acquisition has been confirmed.