GameStop CEO Ryan Cohen's $35 Billion Pay Package Faces Lawsuit While Hostile eBay Bid Stalls

GameStop is navigating multiple major corporate developments at once: a shareholder lawsuit challenging CEO Ryan Cohen's proposed $35 billion compensation package, a stalled hostile takeover attempt for eBay, strong recent financial results, and a strategic pivot toward collectibles and nontraditional assets. The lawsuit argues that shareholders have not received enough information about the structure, valuation, and risks of Cohen's pay plan before voting on it. The package would award options on more than 171 million shares if GameStop's market capitalization reaches $100 billion, a target far above its current level.

Cohen's eBay bid, valued at about $55.5 billion, was rejected by eBay's board, which called it neither credible nor attractive. GameStop then pursued a hostile approach, saying it could fund the deal through its balance sheet and third-party financing while combining eBay with GameStop's collectibles and retail infrastructure strategy.

Despite the corporate drama, GameStop reported record first-quarter 2026 net income of $389.6 million, net sales growth driven by collectibles, and $9.7 billion in liquidity, including $8.4 billion in cash and securities. The company also approved a new $2 billion share repurchase program and launched Power Packs, a digital trading card platform. Analysts view GameStop's cash position as providing downside protection and acquisition flexibility, even as investors remain divided over Cohen's ambitious and polarizing strategy.

(Source：International Business Times)