A cobalt-catalyzed intermolecular three-component coupling of arenes, ethylene, and alkynes was developed using the well-defined air-stable cationic bis(phosphine) cobalt(I) complex, [(dcype) Co(eta(6)-C7H8)][BAr4F] (dcype = 1,2-bis(dicyclohexylphosphino)ethane; BAr4F = B[(3,5-(CF3)(2))C6H3](4)), as the precatalyst. All three components were required for turnover and formation of ortho-homoallylated arene products. A range of directing groups including amide, ketone, and 2-pyridyl substituents on the arene promoted the reaction. The cobalt-catalyzed method exhibited broad functional group tolerance allowing for the late-stage functionalization of two drug molecules, fenofibrate and haloperidol. A series of control reactions, deuterium labeling studies, resting state analysis, as well as synthesis of substrate- and product-bound eta(6)-arene complexes supported a pathway involving C(sp(2))-H activation from a cobalt(III) metallacycle.