GameStop CEO Ryan Cohen has left investors confused after a strange interview on CNBC, where he claimed his company’s $56 billion bid for eBay is possible, even though the company does not have the money to back it up. The interview raised more questions than answers, and left many people wondering whether Cohen truly believes his own proposal.

According to PC Gamer, GameStop’s offer to acquire eBay is a nonbinding proposal that values the e-commerce platform at $55.5 billion, or $125 per share. The deal would be funded through a mix of cash and stock, but it is unclear how GameStop plans to put together the financing, given that its current market cap sits at around $12 billion, a fraction of what the deal would actually cost.

During the interview, CNBC anchor Andrew Ross Sorkin pressed Cohen on how GameStop plans to pay for the acquisition. When Sorkin pointed out that GameStop’s market cap and cash reserves are not enough to cover the $56 billion price tag, Cohen directed him to the company’s website. When asked again, he said GameStop could issue stock to get the deal done, but still could not explain where the money would actually come from.

The anchors pushed back hard on the proposal during the interview, noting that it represents a 10% premium to eBay’s current market value. They also pointed out that GameStop’s own stock has dropped about 10% since the announcement was made, which only adds to the skepticism surrounding the deal.

eBay has confirmed that it will “carefully review and consider” the proposal, but has not indicated whether it will accept the offer. This situation is reminiscent of other CEOs who have faced tough public scrutiny, much like how a Starbucks CEO bizarrely responded to an employee confrontation.

Analysts at Bernstein have written that the strategic rationale behind the deal is unclear. They also noted that eBay’s turnaround under CEO Jamie Iannone has been solid, and that the company has been investing in artificial intelligence tools to improve its platform. On top of that, eBay has already been working to cut costs, reducing its workforce by around 800 employees in recent times.

Cohen’s own compensation package has also drawn significant attention from investors. His pay includes stock options tied to performance targets, which could be worth more than $35 billion if GameStop reaches a $100 billion valuation and hits its profit goals. This has led some to question whether Cohen’s personal financial interests are driving the proposal more than the company’s actual business strategy.

According to CNBC, GameStop has been struggling to adapt to changes in how people buy video games, and has been looking to grow its presence in e-commerce for some time now. The gaming industry itself continues to throw up surprises, with even old Star Wars games suddenly fetching hundreds of dollars due to unexpected new uses.

A possible acquisition of eBay would be one of the largest deals in corporate history, and would require an enormous amount of financing that GameStop has not yet explained how it would secure. As eBay’s board reviews the offer, investors and analysts will be watching closely to see what happens next. 

The proposal has the potential to combine two very different businesses into something much larger, but serious doubts remain about whether GameStop can actually pull it off. With no clear financing plan on the table and the stock price already falling, the path forward looks uncertain at best.

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