Ryan Cohen, the billionaire CEO of GameStop, unveiled an audacious $56 billion takeover bid for eBay this week. But when pressed on CNBC to explain where the money would actually come from, he repeatedly dodged the question, claiming he didn't understand what he was being asked.
The numbers tell the story. GameStop announced an unsolicited offer to acquire eBay at $125 per share in a mix of cash and stock. The company says it can fund the cash portion from its balance sheet, which held $9.4 billion as of January 31, 2026, plus up to $20 billion in debt financing arranged through TD Securities. That leaves a staggering $16 billion shortfall.
When CNBC's Andrew Ross Sorkin attempted to walk Cohen through the math on air, the interaction devolved into an awkward loop. "Where is the rest of the money going to come from?" Sorkin asked directly. "It's half cash, half stock," Cohen replied. When pressed again, he insisted he didn't understand the question, then repeated the same answer.
"We're offering half cash, half stock, and we have the ability to issue stock in order to get the deal done," Cohen said. The implication is stark: GameStop would need to issue significant new shares to make the deal work, a move that would massively dilute existing shareholders. Cohen never acknowledged this directly, nor did he offer any alternative explanation for funding the gap.
On the substance of the proposal, Cohen articulated a vision for what he called making eBay "a legit competitor to Amazon." He emphasized eBay's strong position while suggesting it could grow larger and operate more efficiently. But vague aspirations about business potential do little to address the hard question of financing.
Wall Street Journal reporting indicates Cohen may pursue Middle Eastern sovereign-wealth funds to bridge the funding gap, but he made no such suggestion during his public remarks. Notably, Cohen stands to pocket up to $35 billion in stock compensation if the combined company's market value reaches $100 billion, giving him enormous personal upside regardless of shareholder outcomes.
eBay responded to the unsolicited bid by saying its board would "carefully review and consider" the proposal. The company emphasized it would assess "the ability of GameStop to deliver a binding, actionable proposal," a pointed dig at the lack of financing detail.
The situation underscores the precarious nature of GameStop's core business. The video game retailer closed 590 U.S. locations in 2025 and has shuttered additional stores this year as part of a cost reduction push. The company has attempted various pivots to stay relevant, including failed ventures into cryptocurrency and NFTs, and more recently a "Trade Anything Day" that allowed customers to trade arbitrary items for store credit.
Cohen, who controls over 9% of GameStop and is its largest individual shareholder, has been explicit about his ambitions. In January, he told the Journal he wanted a "big" deal that would either be "genius or totally, totally foolish." Investor Michael Burry, who holds GameStop shares, has been far less generous in his assessment, calling Cohen's approach a scheme to milk a struggling business while waiting for an opportunity to acquire something more valuable.
Author Emily Chen: "When a CEO can't explain the financing on his own $56 billion offer, the board should ask harder questions before wasting shareholder capital on due diligence."
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