GameStop shares took a hit Monday, dropping more than 10% after Michael Burry revealed he sold his entire position in the company. The stock closed at $23.84, down 10.14%, and slipped further in after-hours trading to $23.55. Burry's exit comes just as the video game retailer made a bold $55.5 billion acquisition proposal for eBay.
Burry's sudden exit
Michael Burry announced the sale in a Substack post, his first divestment since launching the blog. He first disclosed his GameStop stake in January 2026, buying shares at 1x tangible book value. The move caught many off guard after Burry had previously written that he 'may not last the week with my GameStop position fully intact. I will certainly sell to an extent, perhaps all or some, but alas, no, not none.' That warning turned out to be prophetic — he sold it all.
The eBay bid
GameStop's board made a non-binding proposal to acquire eBay for $55.5 billion, or $125 per share, split evenly between cash and stock. If the deal goes through, Ryan Cohen — current GameStop chairman — would become CEO of the combined retailer. The proposal signals a dramatic shift for the company, which has been searching for ways to reinvent itself beyond brick-and-mortar game sales.
Why Burry bailed
Burry explained his reasoning in the same Substack post. He said his Berkshire Hathaway-style blueprint for GameStop was incompatible with the leverage needed for the eBay acquisition. In plain terms, Burry saw the deal as a departure from the value-oriented approach he had bet on. He didn't mince words: the leverage required for a $55.5 billion takeover clashed with his vision of a slow, cash-rich build-up.
Market reaction
Investors punished the stock Monday, and the after-hours dip suggests more selling could come. The eBay proposal adds a layer of uncertainty — a massive acquisition would transform GameStop overnight, but it also piles on debt and integration risk. Burry's departure removes a high-profile backer who had been vocal about GameStop's potential as a value play. Now the company is chasing a very different — and far more expensive — strategy.
What happens next depends on eBay's response. The proposal is non-binding, so eBay's board could reject it, counter, or drag out negotiations. Shareholders will also have a say, and Burry's exit might sway sentiment. For now, GameStop is stuck between a fallen stock price and an audacious bid that its biggest former believer couldn't stomach.
