GameStop CEO Ryan Cohen has submitted a $56 billion takeover offer for eBay, a deal that would dwarf GameStop's own market capitalization and ranks among the most unconventional acquisition attempts in recent memory. Merger arbitrage specialists — traders who typically profit from deal spreads — are reportedly sidestepping the opportunity entirely. Michael Burry, who became famous for his Big Short trade and had held a GameStop position, has exited his shares following the announcement.
A $56 billion bid from a company with a fraction of that valuation signals either a bold strategic pivot or a stunt — and the market's skeptics are voting with their feet. When professional merger arbitrageurs, whose entire job is to profit from exactly these situations, refuse to touch a deal, it's a loud signal that they see near-zero probability of completion. GameStop shareholders face real risk of dilution or capital destruction if Cohen pursues this aggressively, while eBay investors get a fleeting headline bump with little substance behind it.
Upcoming: Any formal SEC filing (Schedule TO or 13D amendment) from GameStop disclosing deal financing details. eBay's next board response or public statement. GameStop's next earnings call for management commentary on capital allocation strategy.
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