'Big Short' Investor Michael Burry Exits GameStop After eBay Bid

Michael Burry sold his full GameStop presumption Monday pursuing the company's $55.5 cardinal eBay bid, which helium said would saddle the steadfast with indebtedness his bullish thesis could not absorb.

The "Big Short" capitalist disclosed the merchantability Monday connected his Substack, citing indebtedness levels helium said were incompatible with the "Instant Berkshire" thesis helium had bought into successful January. Burry claimed the woody would apt propulsion GameStop's borrowings past the limits immoderate disciplined purchaser would accept.

"The Instant Berkshire thesis was ne'er compatible with >5x Debt/EBITDA, ne'er good with involvement sum nether 4.0x," Burry wrote, adding that GME was his “first sale” since starting connected the Substack platform.

Burry's determination comes arsenic GameStop pursues an unsolicited, non-binding $55.5 cardinal connection to get eBay astatine $125 per stock successful a astir adjacent divided of currency and stock. The bid draws connected $9.4 cardinal successful currency connected manus alongside a $20 cardinal indebtedness committedness from TD Securities.

GameStop's pivot from meme banal icon to firm acquirer ran done Cohen's reinvention of the equilibrium sheet, capped by a May 2025 acquisition of 4,710 BTC for astir $500 million.

The steadfast aboriginal pledged 4,709 of those coins to Coinbase arsenic collateral for an over-the-counter covered-call strategy, leaving the presumption recorded arsenic a receivable alternatively of arsenic a straight held asset.

Earlier successful February, Cohen described an unspecified acquisition program arsenic "way much compelling than Bitcoin" and declined to regularisation retired liquidating the stash to money a deal. The Bitcoin presumption is worthy astir $368 million, per the company’s Q4 results, making it little than 1% of the eBay bid. The stash’s relation successful backing the woody remains unclear.

GameStop Makes $55.5 Billion Offer to Acquire eBay

Still, Burry maintained helium "supports the effort" down Cohen's program to predominate collectibles and resale, conceding that "this play for eBay makes cleanable sense" successful the eyes of fiscal markets that reward scale.

His skepticism, meanwhile, was connected the financing aspects. The superior markets attack "could not beryllium much pedestrian,” Burry wrote, describing the way arsenic "well-worn ruts connected the roadworthy to capitalist Hell" and arguing Cohen should person pursued Wayfair, with its "70% of its ain past mile deliveries and warehouses each over," arsenic the much logical Amazon competitor.

Burry’s exit comes disconnected arsenic “a acold reminder that the eBay woody is simply a debt-driven catastrophe alternatively than a visionary move,” Ryan Yoon, elder expert astatine Tiger Research, told Decrypt.