Prior to Microsoft’s announcement of its plans to acquire Activision Blizzard, Warren Buffett invested in the developing company. According to a filing with the Securities and Exchange Commission, Berkshire Hathaway bought almost 14.7 million shares of the gaming studio in the fourth quarter of 2021, which was worth about $975 million at the time.
This is a rather odd venture for
the Oracle of Omaha, who is better known for his investments in more value-oriented
businesses like banks, oil companies and consumer staples. It is also
noteworthy to mention that, prior to its acquisition by Microsoft, Activision
Blizzard was in a bad shape financially due to several scandals and the
delayed release of many of its most popular IPs. Still, these out of favour
value stock usually appeal to the magnate.
In addition, Berkshire has made
more moves into the tech world recently, with Apple being the firm’s largest
investment. The company also owns some shares in Amazon and Snowflake, a cloud
software business. It is not clear whether Buffett was the one who introduced
this idea of investing in Activision
Blizzard or if the decision was made by one of those who work
alongside the billionaire, namely Ted Weschler and Todd Combs.
Photo credit: steamXO on Flickr
Berkshire Hathaway
acquired 17.7 million shares of Activision Blizzard
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