The GameStop CEO’s big plan to buy eBay
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Michael Burry dumped his entire stake in GameStop after the company’s audacious bid for eBay, saying the deal’s heavy leverage shattered the investment case he had been building. “I sold my entire GME position,” Burry said in a Substack post late Monday. GameStop made an unsolicited, nonbinding offer to acquire eBay for $125 per share in cash and stock, valuing the online marketplace at roughly $55.5 billion. The proposal is a steep premium to recent trading levels, but also raises questions about financing. GameStop’s market capitalization is a little less than $12 billion. Shares of GameStop fell about 10% Monday following the announcement, reflecting investor skepticism around the feasibility of the deal and the potential strain on the company’s balance sheet. Caption from article by Yun Li, CNBC.
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