GameStop CEO Ryan Cohen has opted to abandon a substantial performance award initially valued at $35 billion. This award, contingent on increasing the company's market value tenfold, was approved in January 2026. Cohen has now requested that the incentive be removed to concentrate efforts on GameStop's operational performance and its pursuit of acquiring eBay, a move that has already been decisively rejected by the auction site.
Cohen's initial strategy for GameStop has seen some short-term success, including a profitable first quarter in 2026. However, this improvement was achieved alongside significant store closures and job losses, and the gains in share price were minimal and quickly reversed. The prospect of GameStop's value increasing tenfold appears increasingly unlikely, prompting Cohen's decision regarding the bonus.
According to GameStop's board, the company had not planned to pursue the eBay acquisition at the time the CEO performance award was approved. Cohen's stated reason for relinquishing the bonus is to ensure leadership is fully focused on GameStop's operating performance and the potential eBay deal. The rationale behind this shift, particularly how it aligns with the operational focus or the acquisition of a company valued at least four times that of GameStop, remains unclear.
GameStop plans to present more details on its acquisition attempt, including a strategic rationale and operational plan for a combined company, later this week. The presentation is expected to address the financial feasibility of such a large acquisition, which eBay has previously deemed "neither credible nor attractive."