GameStop (NYSE: GME) CEO Ryan Cohen recently appeared on CNBC to discuss a shocking $56 billion unsolicited bid to acquire eBay. But instead of a confident victory lap outlining a bold vision for the future of e-commerce, the interview quickly unraveled into an awkward and embarrassing exchange. Throughout the broadcast, Cohen repeatedly struggled to explain the basic financial mechanics of the massive proposal to anchor Andrew Ross Sorkin, turning a major corporate announcement into a defensive and uncomfortable spectacle.
The friction began almost immediately when Sorkin pressed Cohen on how a company with an $11 billion market cap could possibly afford a $56 billion acquisition.
Sorkin pointedly asked: “How does the math math for you? Given the price tag of $56 billion and Gamestop is a fraction of that?”
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Instead of providing a clear financial breakdown on the spot, Cohen deflected to the internet. “It’s on our website it’s half cash half stock but but the details are on our website,” he responded.
When pressed further on the missing $16 billion shortfall, Sorkin stated plainly, “I’m just trying to understand where the the rest of the money would come from? I’m just saying that that math doesn’t get you to the to the price that you’re offering.”
Visibly flustered, Cohen bizarrely claimed confusion over the straightforward question, responding, “I don’t understand your question we’re offering half cash, half stock, and we have the ability to issue stock in order to get the deal done but the full details of of the offer are on our on our website.”
Sorkin sharply retorted, “But you’re on our air we thought we’d get,” before Cohen interrupted again with a repetitive, “So.. I don’t understand your question.”
Later in the interview, Cohen faced grueling questions regarding his own compensation package. The hosts suggested the massive acquisition might simply be a ploy to swallow a larger company to hit a $20 billion market cap threshold that would automatically trigger his massive personal payday. Cohen dodged the specifics of whether shareholder gains would be organic, broadly claiming, “I’m aligned with shareholders so unless our market cap increases substantially and earnings increases substantially I don’t get any salary.”
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