Burry to Dump GameStop Over $56B eBay Bid
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- Michael Burry said he'll exit his GameStop stake, writing on Substack Monday that "I may not last the week with my GameStop position fully intact" and would sell "perhaps all or some but alas, no, not none."
- GameStop submitted an offer to acquire eBay at $125 per share, valuing the deal at roughly $56 billion, to be funded through cash and third-party financing including a "highly-confident" letter from TD Securities for up to $20 billion.
- Burry said he supports CEO Ryan Cohen's vision but called the acquisition strategy "pedestrian," warning the $56 billion is likely just an opening bid and that any closing price would carry leverage "to a level of debt that borders on distressed."
- Burry argued Wayfair would be a superior target, citing its 70% in-house last-mile delivery network, warehouses, cash flow, and float, and noted he had previously floated ADT, Assured Guaranty, Fannie Mae, and Freddie Mac as alternatives.
- Burry had revealed his GameStop position in January and had previously praised Cohen as the investing world's successor to Warren Buffett, making his public reversal on the eBay deal a sharp break.
Why it matters: A prominent GameStop bull publicly breaking with CEO Ryan Cohen adds credibility to skepticism that the $56 billion price — backed by only $20 billion in committed financing from TD Securities — could leave GameStop with distressed-level debt, just as the stock's most celebrated champion heads for the exit.
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