GameStop CEO Ryan Cohen surprised the business world on May 3 when he announced that GameStop was making a bid to acquire eBay for $55 billion.
The news raised an obvious question: How could GameStop, valued at roughly $12 billion, afford to buy eBay?
In a now-viral CNBC interview on Monday, Cohen declined to answer this riddle, and the interview only raised more questions about the acquisition.
In its announcement, GameStop said it would offer half cash and half stock, and noted that GameStop’s 1,600 physical storefronts could serve as hubs to authenticate and fulfill eBay orders. In addition, GameStop has also quietly purchased a 5 percent stake in eBay in recent years, and Cohen presented CNBC with a letter from TD Securities confirming that the bank would provide $20 billion in financing.
However, for many analysts, the math simply isn’t mathing. When pressed on how he would get to $55 billion, Cohen repeatedly told CNBC he didn’t understand the question.
Mashable reached out to GameStop for clarification on Cohen’s interview, and the company responded on Wednesday with a link to a recent post from Cohen on X, where he joked, “I’m selling stuff on eBay to pay for eBay.” That post is now pinned to the top of Cohen’s profile.
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In a follow-up X post, Cohen shared a screenshot of an eBay listing for old socks, along with a warning that his account had reached a $50,000 monthly limit for eBay listings. And not long after that, Cohen shared a screenshot of an email that said his ryan_5050 eBay account had been “permanently suspended because of activity that we believe was putting the eBay community at risk.” (The ryan_5050 eBay profile is still online, with active listings for vintage software and gaming memorabilia.)
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This is what’s called “leaning into the spin.”
GameStop has a history as a meme stock, but by all accounts, the bid for eBay is no joke. In later interviews, Cohen described the deal in more detail, and the New York Times described the offer as “a deal that sounded like a reverse merger.” Before becoming chairman and CEO at GameStop, Cohen founded the popular online pet store Chewy.
eBay confirmed receipt of the acquisition bid in a May 4 press release.
The bare-bones press statement says that eBay had received an “unsolicited proposal” and that it “had no discussions with or outreach from GameStop prior to receiving the proposal.”
It also said that eBay’s board of directors would review the proposal and consider whether or not GameStop was really capable of delivering an “actionable proposal.” (Mashable reached out to eBay with questions, but we have not received a response.)
The New York Times reports that Michael Burry, a GameStop investor who was famously portrayed by Christian Bale in The Big Short, has since sold all of his GameStop holdings.
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