GameStop has submitted a takeover offer for eBay worth approximately $55.5–$56 billion in a mix of cash and stock — a staggering sum for a company whose core retail business has been shrinking for years. The bid was driven by CEO Ryan Cohen, the same figure credited with GameStop's meme-stock revival. Notable short-seller-turned-bull Michael Burry has since liquidated his entire GameStop stake in response to the news.
A $56 billion acquisition attempt from a company with a market cap far smaller than the deal itself raises immediate questions about dilution — existing shareholders could see their ownership stake slashed if GameStop issues massive amounts of new stock to fund this. Burry's full exit is a loud signal: even a recent believer thinks the risk-reward has collapsed. GME shareholders face serious downside if the deal falls apart or gets financed on punishing terms.
Watch for eBay's formal response to the bid — expected within days. GameStop's next earnings report will reveal whether it has the balance sheet to credibly support this offer. Monitor any SEC filings from GameStop disclosing how it plans to finance the deal (cash vs. stock ratio). Also watch BTC price moves, as GameStop's $368M bitcoin position becomes a more meaningful variable if the company's finances come under scrutiny.
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