Investor Michael Burry, known for his role in "The Big Short," has sold his entire stake in GameStop (GME.US). The move follows GameStop's proposal to acquire e-commerce platform eBay (EBAY.US) in a cash-and-stock deal valued at approximately $56 billion.

Burry had expressed optimism about GameStop around 2019, which contributed to a rise in the company's stock price. However, the investor informed subscribers via his Substack newsletter on Monday that he has exited the position, citing concerns that GameStop could take on significant debt due to the acquisition.

"I sold my entire GameStop stake," Burry stated. "From any perspective, the 'instant Berkshire' investment thesis does not align with reality."

GameStop offered to acquire eBay at $125 per share in cash and stock, representing a roughly 20% premium over eBay's closing price last Friday. As of last week, GameStop's market capitalization stood at approximately $12 billion, while eBay is considerably larger with a market value of around $46 billion.

According to reports, GameStop indicated it has received a preliminary, non-binding "highly confident letter" from TD Bank, committing to provide about $20 billion in debt financing. The company also pledged to achieve around $2 billion in annual cost savings within 12 months after the deal closes.

The sale of GameStop shares marks Burry's latest publicly disclosed trading strategy. He recently posted about establishing a new short position by purchasing put options on the iShares Semiconductor ETF (SOXX). On Monday, the investor also revealed he has nearly doubled his stake in Lululemon Athletica (LULU.US).