GameStop Stock Drops as Michael Burry Dumps Stake on eBay Bid
GameStop (GME) shares dropped after “The Big Short” investor Michael Burry sold his entire stake.
The investor announced the move on his Substack post. He revealed that the GameStop sale is his first divestment since launching the blog.
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Michael Burry Exits Entire GameStop Stake
GameStop stock ended Monday at $23.84, down 10.14%. GME continued lower in after-hours trading, dipping 1.22% to $23.55, Google Finance data shows.
GameStop Stock Performance. Source: Google Finance
Burry’s exit followed GameStop’s non-binding $55.5 billion proposal to acquire e-commerce platform eBay at $125 per share. The offer splits the payment evenly between cash and stock, with Ryan Cohen taking the chief executive role at the combined retailer.
The investor first disclosed his GameStop position in January. However, Cohen’s acquisition push prompted him to walk away.
“I may not last the week with my GameStop position fully intact,” he wrote in a note. “I will certainly sell to an extent, perhaps all or some, but alas, no, not none.”
Burry wrote that his Berkshire Hathaway-style blueprint for GameStop was incompatible with the leverage Cohen needs to close the eBay deal.
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