GameStop CEO Ryan Cohen said on social media that he is selling items on eBay to fund the company's bid to acquire eBay [1, 2].
The statement follows a combative interview on CNBC where Cohen faced questions about the financial feasibility of the massive acquisition. The move highlights the tension between GameStop's ambitious growth strategy and its current capital constraints.
GameStop launched an unsolicited offer to acquire eBay for nearly $56 billion [1]. This bid significantly exceeds eBay's market capitalization of $46 billion [1]. However, the scale of the deal is starkly disproportionate to GameStop's own market capitalization, which stands at $11.29 billion [3].
During the CNBC interview, Cohen addressed the financial shortfall of the proposed merger. He said, "We have a $16 billion funding gap for the eBay deal" [2]. The interview was described as terse as Cohen was pressed on how the company intended to bridge that gap.
Following the broadcast, Cohen took to X, formerly known as Twitter, to address the funding issue. "I'm selling stuff on eBay to pay for eBay," Cohen said [1].
The acquisition offer was first announced by GameStop on a Sunday earlier this month [1, 2]. The subsequent week of media appearances and social media posts have centered on the logistics of the nearly $56 billion valuation [1].
“"I'm selling stuff on eBay to pay for eBay."”
The disparity between GameStop's $11.29 billion market value and a $56 billion acquisition target suggests a high-risk strategy that relies on aggressive financing or market speculation. Cohen's use of humor to deflect questions about a $16 billion shortfall indicates a unconventional approach to investor relations and corporate communication during a major M&A attempt.
