Not optimistic about eBay's acquisition! "Big short" Burry quickly clears out GameStop Corp. Class A (GME.US).

The prototype of "The Big Short" and legendary investor Michael Burry has sold all of his GameStop Corp. Class A (GME.US) shares, after GameStop Corp. Class A proposed a cash and stock acquisition of e-commerce platform eBay (EBAY.US) for about $56 billion. Burry had been optimistic about GameStop Corp. Class A around 2019, which drove the company's stock price up. However, the investor announced on Monday in his Substack newsletter to subscribers that he had exited his position, citing concerns that GameStop Corp. Class A could take on enormous debt due to the acquisition. Burry stated: "I have sold all of my GameStop Corp. Class A shares. From every angle, the 'instant Berkshire' investment philosophy does not match reality." GameStop Corp. Class A proposed to acquire eBay at $125 per share in cash and stock, offering a premium of about 20% over eBay's closing price last Friday. As of last Friday, GameStop Corp. Class A had a market value of about $12 billion. eBay, on the other hand, is much larger with a market value of about $46 billion. Reports indicate that GameStop Corp. Class A has received a preliminary, non-binding "highly confident letter" from Goldman Sachs, committing to provide around $20 billion in debt financing, and pledging to achieve about $2 billion in annual cost savings within 12 months after closing. The sale of GameStop Corp. Class A shares is Burry's latest disclosed trading strategy. He recently also disclosed that he had established new short positions, purchasing put options on the iShares Semiconductor ETF (SOXX). The investor also stated on Monday that he had nearly doubled his holdings in Lululemon Athletica (LULU.US).