GoKawiilUnder the proposed deal to buy eBay, Cohen would become the chief executive of the new firm and receive no salary or bonuses, being "compensated solely based on the performance of the combined company".
GameStop, which currently has a stock market valuation of around $11.9bn, said it has a commitment letter from TD Securities to provide around $20bn in debt to help finance the deal.
The majority of the proposed cost cuts would be in eBay's sales and marketing division, which GameStop said had failed to attract more users to a "marketplace with near-universal brand recognition".
The proposal does not sound like a "terribly good offer" as it would saddle eBay with GameStop's debt, said retail industry analyst Sucharita Kodali from market research firm Forrester.
It makes sense for GameStop because it could lift its valuation by being linked with a larger company like eBay, she told the BBC.
"The truth is, we are not necessarily putting two strong companies together," Kodali added.
Shares in eBay jumped by more than 13% in after-hours trading when news of the potential offer emerged on Friday, while GameStop jumped by around 4%.
GameStop's shops would give eBay a national network for its "live commerce" and other business operations, Cohen said.
Cohen, who became the GameStop boss in 2023, has criticised its slow shift into e-commerce.