Warren Buffett reduces Activision stake as Microsoft acquisition draws near

Warren Buffett’s Berkshire Hathaway Dumps Activision Blizzard Stake as Microsoft Acquisition Nears

Warren Buffett, the chairman and CEO of Berkshire Hathaway, is making moves in the investing world. The conglomerate recently disclosed that it has significantly reduced its stake in Activision Blizzard as Microsoft’s deal to acquire the video game company gets closer to completion.

According to a new 13G filing released on Monday evening, Berkshire Hathaway now holds a 1.9% stake in Activision with 14,658,121 shares. This is a significant decrease from the 6.3% stake it held at the end of March and the 6.7% stake at the end of 2022.

The news of Microsoft’s $68.7 billion acquisition of Activision boosted the latter’s stock, which soared more than 9% last week. The Federal Trade Commission’s failed attempt to block the deal and Microsoft’s successful appeal against U.K. regulators’ block further fueled speculation about the acquisition’s completion.

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Despite the decrease in Berkshire Hathaway’s stake in Activision, Buffett has shown confidence in the deal. He revealed that his investing lieutenants, Ted Weschler and Todd Combs, initially took a stake in Activision in October and November 2021 with an average cost of $77 per share. Buffett and his longtime partner, Charlie Munger, have a history of successful merger arbitrage plays, and they are betting that Microsoft’s acquisition of Activision will go through.

This latest move by Berkshire Hathaway reflects the dynamic nature of the investing world and the strategies employed by seasoned investors like Warren Buffett. As the market continues to evolve, it will be interesting to see how Berkshire Hathaway’s portfolio evolves in response to changing market conditions.

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