GameStop CEO Evades Questions about Where Money for eBay Acquisition Comes from in One of Weirdest Interviews You'll Ever See
"I don't understand your question."
George Kamper
Days ago, GameStop announced it wants to buy eBay for $55.5 billion in cash and stock, but many people wonder where that money comes from. The company's CEO Ryan Cohen agreed to talk to CNBC about the acquisition, but you would think he was forced to go because it turned into one of the most frustrating and hilarious videos that could be named "GameStop CEO avoids answering where he got the money for 5 minutes."
CNBC pointed out that the math ain't mathing, as GameStop's marketing cap (10.8 billion at the moment) and its stocks (about $9 billion) are only a fraction of the promised $55.5 billion, and even with TD Securities' promise to provide $20 billion, it's not enough to cover the costs. When asked how he was planning to get the remaining $16 billion, Cohen sent the journalist to read GameStop's press release. You can read it yourself, but last time I checked, there was no other info than what the reporter mentioned.
After the ridiculous exchange (you should really watch it below), with Cohen obviously evading the question ("We'll see what happens"), he simply said: "I don't understand your question."
That baffled CNBC anchors, and I can understand their disbelief. Looks like Cohen has something to hide, or maybe his plan is to take a loan and pay it back from that $2 billion he promised to deliver in cost reductions within a year of closing the deal.
So the question is still open: how will GameStop pay for eBay if it doesn't have the money? I guess we'll see if the deal actually goes through.
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