It Gets Awkward When CNBC Host Presses CEO About Company’s Attempted Acquisition Of Online Giant
An interview on CNBC turned awkward Monday when GameStop CEO Ryan Cohen could not answer a basic question about his company’s attempted acquisition of eBay. GameStop offered to buy eBay for $55.5 billion, with Cohen…
An interview on CNBC turned awkward Monday when GameStop CEO Ryan Cohen could not answer a basic question about his company’s attempted acquisition of eBay.
GameStop offered to buy eBay for $55.5 billion, with Cohen offering $125 per share for eBay in cash and stock. Cohen refused to give a direct answer to CNBC’sAndrew Ross Sorkin as he repeatedly asked on “Squawk Box” how GameStop could afford to purchase eBay when the company’s market capitalization amounts to $11.31 billion.
“I think we can start with the idea that the market cap of GameStop, let’s call it $11 billon, you have $9 billion on your balance sheet. Arguably if you’re providing effectively all of your stock and then cashed it, it gets you to $20 . You have this letter from TD , that’s another $20 . We’re now at $40 . We’re still off by, call it $16. And the $20, as far as I understand, while it’s considered a highly confident letter, meaning TD saying they’re highly confident that they’d provide the financing, it’s not locked financing,” Sorkin said.
“Well, we’ll see what happens,” Cohen replied.
“Um … I hear you. I understand that, I’m just trying to understand where the rest of the money would come from,” Sorkin said.
“It’s half cash, half stock,” Cohen said.
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