finance
GameStop Pursues $56 Billion eBay Acquisition as Burry Sells Stake
Investor Michael Burry has sold his entire stake in GameStop Corp. following reports of the retailer's $56 billion cash-and-stock bid for eBay Inc. Burry cited concerns over debt in a Substack post, marking his first stock sale since launching his newsletter. GameStop CEO Ryan Cohen defended the deal in a CNBC interview, highlighting financing plans and competitive benefits.
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Citing the retailer's reported bid for eBay Inc. as a shift that no longer aligns with his investment thesis. ZeroHedge reported that Burry, who backed GameStop in 2019, made the decision after the potential $56 billion cash-and-stock acquisition emerged, a deal valued at nearly five times GameStop's own market value.
In a post to his Substack subscribers on Monday, Burry wrote, 'Wall Street does indeed mistake debt for creativity, and does so constantly. GameStop reportedly offered $125 per eBay share in the bid, which ZeroHedge described as far larger than GameStop itself. Burry noted that this was his first stock sale since launching his newsletter.
The move follows Burry's earlier support for GameStop in 2019, which had helped fuel investor interest in the stock. GameStop CEO Ryan Cohen appeared in a 16-minute interview on CNBC's Squawk Box yesterday morning, on May 4, 2026. 4 billion in cash reserves.
He also mentioned receiving a financing letter from TD Securities for up to $20 billion to support the acquisition. During the interview, CNBC hosts Becky Quick and Michael Santoli pressed Cohen on dilution concerns and the strategic logic behind the acquisition. Cohen argued the deal would help GameStop better compete with Amazon.
He added that his incentives are tied to shareholder performance. Andrew Ross Sorkin highlighted a reported $16 billion financing gap for the acquisition during the discussion. ZeroHedge reported that Cohen's responses leaned on references to the company's website and repetitions of the offer structure, amid growing tension in the exchange.
