June 23 (Reuters) - Ryan Cohen, the billionaire CEO of GameStop, will not receive a potential performance award from the videogame retailer and plans to unveil more details about his bid to takeover eBay soon, the company said on Tuesday.
GameStop unveiled a compensation package worth roughly $35 billion for Cohen in January, hinging on a turnaround that requires him to lift the struggling company's market value more than tenfold and sharply boost its profit.
EBay rejected a $56 billion takeover bid
from the much smaller GameStop in May, citing financing doubts and calling the proposal "neither credible nor attractive."
Cohen on Tuesday said he wants the company's leadership to be fully focused on GameStop's operating performance and the acquisition.
The company said it would release additional materials regarding its proposed acquisition of eBay this week, including a detailed presentation of the strategic rationale and operational plan for the combined company.
Cohen, who joined the GameStop board in January 2021 and became the CEO in September 2023, has steered the company through a period that saw its return to profitability through aggressive cost cutting, which included shuttering hundreds of stores.
Earlier this month, GameStop posted a 14% rise in quarterly revenue, buoyed by strong collectibles demand, and said its board approved a new $2 billion share repurchase program.
For the first quarter ended May 2, GameStop's net sales came in at $835.3 million, compared with $732.4 million a year ago.
(Reporting by Jaspreet Singh in Bengaluru and Svea Herbst-Bayliss in New York; Editing by Anil D'Silva and Sahal Muhammed)
