Following GameStop's $56 billion unsolicited bid for eBay, CEO Ryan Cohen faced sharp grilling on CNBC over financing gaps and deal viability. His vague, incoherent answers drew laughs from hosts and prompted investor Michael Burry to dump his entire stake, spooking markets.
In the wake of GameStop's surprise $56 billion offer to acquire eBay—announced Sunday night as detailed in prior coverage—CEO Ryan Cohen sat for a six-minute CNBC interview with anchors Andrew Ross Sorkin, Becky Quick, and Melissa Lee. Pressed on how his $11-12 billion company would fund the $56 billion deal (a premium over eBay's $47 billion valuation), Cohen cited $20 billion from GameStop's cash and liquid investments, $11 billion in stock, and $20 billion from TD Securities. But he offered no plan for the remaining gap, repeatedly dodging with phrases like 'Half cash, half stock' and 'I don’t understand your question.' Quick directly asked, 'Where’s the rest of the money coming from?' to which Cohen confirmed no prior stake in eBay or talks: '…No. We’re just starting.' eBay has not responded positively.
The interview aired as GameStop shares dropped live on screen. 'Big Short' investor Michael Burry, a prior Cohen backer who re-entered GME this year, revealed on Substack May 4: 'I sold my entire GME position,' slamming the debt-heavy plan as lacking creativity. Cohen pitched the merger as an Amazon rival, saying 'eBay could be bigger,' with visions of cost cuts and store leverage.
Reactions split: r/Superstonk users hailed Cohen as 'standing tall,' while critics deemed it unserious amid the evasiveness.
