GameStop Corp. (NYSE:GME) CEO Ryan Cohen‘s behavior and bizarre answers raised concerns as he discussed the company’s $56 billion unsolicited bid to acquire eBay Inc. (NASDAQ:EBAY).
Cohen’s distracted, seemingly confused demeanor during the 16-minute CNBC interview on Monday left viewers and hosts perplexed. The CEO called the bid “an opportunity to build a much larger business,” but his lack of eye contact and rapidly changing facial expressions added to the strangeness of the interview.
Cohen’s Awkward Answers
When host Andrew Sorkin asked Cohen to explain the $16 billion gap in proposed financing and the acquisition price for eBay, the CEO responded, “It’s on our website…It’s half cash, half stock.” When pressed again for a detailed answer for viewers, Cohen replied, “We’ll see what happens.”
Sorkin questioned whether there have been direct talks with the company and what progress has been made so far. Cohen answered with a “No.” After a long gap, he added: “We’re just starting.”
Becky Quick took over from Sorkin and precisely asked again where the rest of the money would come from, Cohen snapped, “I don’t understand your question,” followed by an awkward silence. After telling Quick to refer to the website for details, Cohen said the company could issue new stock.
When the host questioned whether a potential eBay acquisition would actually benefit GameStop shareholders or just lead to stock dilution and added debt, given Ryan Cohen's plan to issue more shares to fund the deal gap, Cohen just said, “I’m aligned with shareholders.”
Quick suggests a scenario where shareholders may see little benefit from the acquisition. Cohen replies, “If I don’t hit the thresholds, then I don’t get anything.”
Finally, it was host Michael Santoli‘s question, “Where’s the evidence that you know how to grow a mature consumer business?” that irked Cohen as he went on the defensive. “Didn’t you guys call for GameStop’s demise multiple times?” the CEO hit back.
“Look at our financial performance…Is it better than you guys anticipated?” Cohen asked when the host pointed to GameStop’s declining revenue.
Social Media Reactions Pour In
The interview has gone viral on social media with various reactions from viewers.
Senior Communication Leader, Keith Berman said on LinkedIn, “If anyone wants a masterclass in how *not* to do an interview, especially on live national TV, this is the one to watch.”
One user on X said that they planned on “shorting GME” after watching the interview.
GameStop's Bold Bid Shocks Wall Street
GameStop’s massive bid for eBay has raised eyebrows due to its size relative to GameStop’s ~$12 billion market cap. The company has already quietly built a 5% economic stake in eBay and secured up to $20 billion in third-party acquisition financing from TD Securities.
The proposed deal has raised investor concerns, as GameStop's aggressive strategy includes Ryan Cohen potentially bypassing management and appealing directly to shareholders if eBay resists. The $125-per-share offer, about a 46% premium over the pre-bid price, adds pressure on eBay's board, as it could entice both retail and institutional investors to support a potential hostile takeover.
Notably, Michael Burry exited his position in GameStop after the eBay bid, stating the debt required for the acquisition was incompatible with his vision for the company. He had hoped that Cohen would reshape GameStop into a modern-day Berkshire Hathaway through disciplined deal-making, a vision that seems to be at odds with the current direction.
Price Action: On Monday, eBay stock closed 5.05% higher at $109.33, as per Benzinga Pro while GameStop plunged 10.14% to close at $23.84.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Login to comment