During an interview with the American television channel CNBC, Ryan Cohen was questioned regarding the calculation behind the $55.5 billion acquisition bid. Gamestop currently has a market value of just under $12 billion, cash reserves of $9 billion, and a loan commitment of $20 billion. This leaves a financial gap of over $16 billion.
When asked how the difference would be covered, Cohen chose to refer back to the basic structure.
I don't understand your question. We are offering half cash, half stock. We have the ability to issue stock to get the deal done, but the full details of the offer are on our website, Ryan Cohen stated.
Account Closed Down
Following the appearance, Cohen posted on the platform X announcing that he was "selling stuff on Ebay to pay for Ebay."
On the CEO's now suspended account, there were 36 listings, consisting of sports cards, Gamestop products, a signed copy of the acquisition bid, and a pair of used socks where bidding reached over $14,000.
Shortly thereafter, Ebay announced that it had permanently suspended Cohen's account. According to the platform, the decision was due to the activity being considered a risk to Ebay users. All ongoing bids were cancelled.
"11,500 Employees Not Needed"
Despite the suspension, Ryan Cohen plans to push the deal through and implement cost savings in the e-commerce company. In a subsequent podcast interview, he commented on the company's workforce.
There are 11,500 employees. That doesn't make sense. I could run that business from my house. It's Ebay, it looks the same as it did in 1995. 11,500 employees are not needed, he said.
Market Reaction
Ebay has in a press release confirmed that they have received the bid. The board of directors is evaluating the proposal and states that they will review Gamestop's ability to deliver a "binding and feasible proposal." The company had not had any contact with Gamestop before the bid was made public.
On Wall Street, there is skepticism about the deal. Colin Sebastian, an analyst at Baird, assesses in a comment that there is a "relatively low probability of success."
Gamestop's stock fell by over 10 percent after the CNBC interview. According to reports in the New York Times, the well-known investor Michael Burry has subsequently chosen to sell his entire holding in the company.