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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 ā€œbizarre,ā€ ā€œevasive,ā€ ā€œdizzyingā€ and ā€œawkward.ā€Ā 

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 GameStop’s $11 billion.

When asked how math for the deal would actually pan out, Cohen answered, ā€œIt’s on our website. Half cash, half stock, but the details are on our website.ā€Ā 

But between GameStop’s 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.

ā€œWe’ll see what happens,ā€ Cohen responded when asked how GameStop would close that gap.

ā€œThat’s a pretty straightforward question,ā€ CNBC co-anchor Becky Quick chimed in. ā€œI don’t get it. Where’s the rest of the money coming from?ā€

ā€œI don’t understand your question,ā€ Cohen said. ā€œWe’re 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 ā€œselling 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 Cohen’s proposal letter to eBay.

ā€œeBay has the second largest e-commerce franchise, and there’s 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€œ[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 ā€œcarefully and thoroughlyā€ considers the proposal.Ā 

ā€œThere’s 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 

ā€œYou look at GameStop as an example,ā€ he added. ā€œGameStop [is a] very difficult business, [it] should’ve been bankrupt multiple times over and it’s doing okay, it’s 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 GameStop’s takeover of eBay ā€œcould be a legit competitor to Amazon.ā€ Amazon’s revenue totaled close to $717 billion, compared to GameStop’s total revenue of $3.6 billion last year.

Cohen eventually said ā€œthere’s a lot of fat to cutā€ at eBay, alluding to the company’s $2.4 billion spend on sales and marketing last year. He added that if he was ā€œrunning 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.

ā€œThere’s 11,500 employees,ā€ Cohen said. ā€œIt doesn’t make sense. I could run that business from my house. It’s eBay, it looks the same as it did in 1995. It doesn’t need 11,500 employees.ā€

Ā 

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