GameStop announced on Sunday that it would offer to buy eBay for nearly $56 billion. One day later, CNBC spoke to GameStop CEO Ryan Cohen about the news, in an interview media outlets have called ābizarre,ā āevasive,ā ādizzyingā and āawkward.āĀ
In what felt more like an SNL sketch than a CNBC interview, the billionaire CEO of GameStop provided little context or further explanation as to how the company would afford and operate eBay, which has a market capitalization of $46 billion compared to GameStopās $11 billion.
When asked how math for the deal would actually pan out, Cohen answered, āItās on our website. Half cash, half stock, but the details are on our website.āĀ
But between GameStopās market cap, $9 billion cash reserves and the $20 billion financing confidence letter the company received from TD Securities, that still leaves Cohen short around $16 billion.
āWeāll see what happens,ā Cohen responded when asked how GameStop would close that gap.
āThatās a pretty straightforward question,ā CNBC co-anchor Becky Quick chimed in. āI donāt get it. Whereās the rest of the money coming from?ā
āI donāt understand your question,ā Cohen said. āWeāre offering half cash, half stock. We have the ability to issue stock in order to get the deal done, but the full details of the offer are on our website.ā
Then, yesterday, Cohen posted on X that he was āselling stuff on eBay to pay for eBay.ā Shortly after, Cohen said that his eBay account was suspended. His account is still live with all listings, which includes baseball trading cards, a $9,000 first generation Apple iPhone and other collectibles. Each listing includes a signed copy of Cohenās proposal letter to eBay.
āeBay has the second largest e-commerce franchise, and thereās a big opportunity to do something much larger and pull costs out of the system, as well as accelerate revenue growth,ā Cohen had said in the CNBC interview. ā[Our] focus on collectibles can be a much larger business, but bringing in an entrepreneurial mindset is what I plan on doing.ā
GameStop has built a 5% stake in eBay. The company posted a press release to its website, confirming receipt of the offer but declining to comment any further while the board ācarefully and thoroughlyā considers the proposal.Ā
āThereās an opportunity to make a much larger business, to make the business much more efficient, and to accelerate revenue growth,ā Cohen said in the interview.Ā
āYou look at GameStop as an example,ā he added. āGameStop [is a] very difficult business, [it] shouldāve been bankrupt multiple times over and itās doing okay, itās making a few bucks. eBay is in a very, very strong position but it could be in a much stronger position, and it could be a much larger business than what it currently is.ā
In a separate interview with the Wall Street Journal, Cohen said that GameStopās takeover of eBay ācould be a legit competitor to Amazon.ā Amazonās revenue totaled close to $717 billion, compared to GameStopās total revenue of $3.6 billion last year.
Cohen eventually said āthereās a lot of fat to cutā at eBay, alluding to the companyās $2.4 billion spend on sales and marketing last year. He added that if he was ārunning the business, it would make a lot more money.ā
Following the CNBC interview, GameStop stock dipped more than 10%. Investor Michael Burry, who was portrayed by Christian Bale in the film The Big Short, said he sold his entire GameStop stake.Ā
Cohen later spoke to OpenAI-acquired talk show TBPN, where he seemed to be in better spirits. He still seemed staunch in his belief that he will be the right person to steer eBay in a new direction.
āThereās 11,500 employees,ā Cohen said. āIt doesnāt make sense. I could run that business from my house. Itās eBay, it looks the same as it did in 1995. It doesnāt need 11,500 employees.ā
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