Michael Burry, known for his role in ‘The Big Short,’ exited his GameStop holdings on Monday following the company’s $55.5 billion bid to purchase eBay. He expressed concerns that the proposed debt from this acquisition would exceed his optimistic financial projections. On his Substack platform, Burry detailed how this move conflicts with the ‘Instant Berkshire’ strategy he adopted in January, as it involves a Debt/EBITDA ratio above five times and an interest coverage below four times.
The unsolicited, non-binding offer from GameStop aims to acquire eBay at $125 per share using a mix of cash and stock. This bid is supported by $9.4 billion in available cash and a $20 billion debt commitment from TD Securities. Since transitioning from a meme-stock phenomenon to an acquisition-focused entity, GameStop has significantly restructured its balance sheet under the leadership of CEO Ryan Cohen, including acquiring 4,710 BTC for about $500 million in May 2025. The company pledged most of these Bitcoin assets as collateral with Coinbase.
Cohen had previously hinted at a significant acquisition that was more attractive than Bitcoin holdings, without confirming any liquidation to finance such deals. Despite the Bitcoin portfolio’s current value being just under $368 million—less than one percent of the eBay bid—its role in funding the acquisition remains ambiguous.
Burry acknowledged Cohen’s strategic direction towards dominating collectibles and resale markets but criticized the financial approach, describing it as a “pedestrian” move. He suggested that acquiring Wayfair, with its extensive delivery network, would have been a more logical strategy to compete with Amazon.
Ryan Yoon of Tiger Research commented on Burry’s withdrawal, labeling the eBay deal as financially imprudent and confirming GameStop’s high-risk nature. Meanwhile, eBay has acknowledged receiving the proposal, stating it will thoroughly evaluate the offer’s merits.
Currently, eBay shares are trading at $105.37, below the proposed offer price, while GameStop shares have increased by 1.3% to $24.14 as of Monday.