Michael Burry Sells Entire GameStop Stake Over eBay Bid Debt

Michael Burry sold his entire GameStop position on Monday, citing the retailer’s $55.5 billion unsolicited proposal to acquire eBay and the debt it would require.

Burry disclosed the sale on his Substack, saying the deal’s financing would exceed the leverage and interest-coverage limits of the investment approach he adopted in January. He wrote that the thesis was “never compatible with >5x Debt/EBITDA” and “never ok with interest coverage under 4.0x,” and called the trade his “first sale” since launching the Substack.

GameStop submitted a non-binding $125-per-share proposal to buy eBay in a roughly even split of cash and stock, valuing the offer at about $55.5 billion. The company said it would use $9.4 billion in cash and liquid investments on hand and up to $20 billion in third-party financing arranged by TD Securities.

GameStop said it expects about $2 billion in annual cost savings within 12 months if the deal proceeds.

Burry wrote that he supports GameStop’s plans to expand in collectibles and resale but found the proposed capital structure unacceptable. He criticized the capital markets approach as “pedestrian” and suggested Wayfair as a target that would better align with GameStop’s logistics network.

Ryan Yoon, senior analyst at Tiger Research, described Burry’s exit as a “cold reminder” that the eBay proposal relies heavily on debt and noted Burry chose to exit the position.

In May 2025 GameStop bought 4,710 bitcoins for roughly $500 million and later pledged 4,709 coins to Coinbase as collateral for an over-the-counter covered-call strategy; the position is recorded as a receivable. GameStop’s Q4 results list the bitcoin holding at about $368 million, less than 1% of the value implied by the eBay offer.

eBay’s board confirmed receipt of the unsolicited proposal and said it will carefully review and consider the offer, citing the value of the GameStop stock component and GameStop’s ability to deliver a binding bid. At the time of filing, eBay shares were trading below the $125 offer price while GameStop shares were modestly higher on the day.

Burry is known for his role in the 2008 financial crisis and has used his Substack to disclose portfolio changes since January. His sale ends his public holding in GameStop.