Just weeks before Microsoft announced plans to buy Activision Blizzard, Warren Buffet’s Berkshire Hathaway made a seemingly out of left field investment, buying millions of shares of the video game company.
According to a filing with the Securities and Exchange Commission, Berkshire Hathaway (BRKB) bought nearly 14.7 million shares of Activision Blizzard (ATVI) in the fourth quarter of 2021. When the company bought into ATVI, the stake was worth about $975 million, with an average price of $66.53 a share.
After Microsoft announced its surprise $68.7 billion acquisition, the Activision share price jumped around 26% and has reached up to more than 20% since the end of 2021. Activision Blizzard is now trading at about $81.50 a share, which makes Berkshire’s stake in the company now worth about $1.2 billion, a 22.5% gain for Berkshire.
Microsoft’s offer for Activision Blizzard values the company at $95 a share in cash, making Berkshire’s stake worth even more.
Buffet acquired his Activision Blizzard shares after they fell nearly 30% in 2021 due to a sexual harrasment scandal and the delayed launch of several key games. The July 2021 lawsuit was brought against the company by California’s Department of Fair Employment and Housing (DFEH), alleging gender discrimination, harassment, and retaliation.
Buffet is expected to provide an update on Berkshire’s investments in his shareholder letter and annual report, coming out in late February.
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