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Buffett’s Berkshire bought shares of Activision ahead of Microsoft deal

warren buffet

Gerald Miller | CNBC

Warren Buffett’s Berkshire Hathaway bought about $1 billion worth of Activision Blizzard stock in the fourth quarter, according to a regulatory filing, before Microsoft agreed to buy the video game maker for $68.7 billion. dollars.

Berkshire owns 14.66 million shares valued at $975 million at the end of 2021, according to the filing.

Microsoft announced its intention to acquire Activision Blizzard in mid-January for $95 per share, sending the stock up 25% to over $82, although it has since fallen a bit. It would be the largest contract ever signed by an American technology company.

Buffett is poised to make a handsome profit if the deal goes through. The stock rose to $56.40 in the fourth quarter after California’s Department of Fair Employment and Housing filed a lawsuit alleging Activision and its affiliates encouraged a sexist culture and paid women less than men.

Activision also said in November that it was delaying the releases of Diablo IV and Overwatch 2. And it was hit by disappointing reviews for its new game Call of Duty: Vanguard, released the same month.

Bill Gates, the co-founder and former CEO of Microsoft, resigned from the boards of Berkshire and Microsoft in 2020. Gates is a longtime friend of Warren Buffett, chairman and CEO of Berkshire Hathaway. According to Forbes, they rank fourth and sixth respectively among the richest people in the world.

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