GameStop CEO Ryan Cohen surprised the business world on May 3 when he announced that GameStop was making a bid to acquire eBay for $55 billion.
The news raised an obvious question: How could GameStop, valued at roughly $12 billion, afford to buy eBay?
In a now-viral CNBC interview on Monday, Cohen declined to answer this riddle, and the interview only raised more questions about the acquisition.
In its announcement, GameStop said it would offer half cash and half stock, and noted that GameStop's 1,600 physical storefronts could serve as hubs to authenticate and fulfill eBay orders. In addition, GameStop has also quietly purchased a 5 percent stake in eBay in recent years, and Cohen presented CNBC with a letter from TD Securities confirming that the bank would provide $20 billion in financing.
However, for many analysts, the math simply isn't mathing. When pressed on how he would get to $55 billion, Cohen repeatedly told CNBC he didn't understand the question.
