Osborne didn't hide his beaming smile as he made his comments late last night live on ITV. The Evening Standard Editor described the election as "completely catastrophic for the Conservatives and Theresa May".
"It's difficult to see, if these numbers are right, how they would put together the coalition to remain in office. But equally it's quite difficult to see how Labour could put together a coalition. It's on a real knife-edge," he forewarned last night while watching the count come in.
"Clearly, if she’s [Mrs May] got a worse result than two years ago and is almost unable to form a government then she, I doubt, will survive in the long term as the Conservative party leader."
The Torries have lost seats, only managing to hold onto 318, which is eight short of the magic number needed to form a government. And the only possibility that appears open to PM Theresa May now is to turn to Northern Ireland and somehow strike a deal with the DUP to support her in order to get her over the finishing line of the required 326 seats to stay in power.
Labour leader Jeremy Corbyn is now calling on Theresa May to resign, saying that he wants to put together a minority government.
"This election was called by the Prime Minister to gain a large majority in order to assert her authority. The election campaign has gone on for the last six weeks, I have travelled the whole country and you know what: politics has changed," he said last night.
"Politics is not going back into the box where it was before. What has happened is people have said they have had quite enough of austerity politics, they have had quite enough of the underfunding of the health service, underfunding our schools and education service."
He added, "If there is a message from tonight's result it is this: the Prime Minister called the election, she wanted a mandate. The mandate she has got is lost Conservative seats, lost votes, lost support and lost confidence. I would have thought that was enough to go and make way for a government that will be truly representative of the people of this country."
But a defiant Theresa May has vowed to stay on, pointing out that the Tories are still the largest party in the UK despite their dramatic dip. "As we look ahead and wait to see what the final results will be, I know - as I say - the country needs a period of stability and whatever the results are the Conservative Party will ensure we fulfil our duty in ensuring that stability so that we can all, as one country, go forward together," she stated.