Activision Blizzard shares closed up 3.25% on Monday, after Warren Buffett said his company Berkshire Hathaway took over 9.5% of the video game maker, which Microsoft bought for $68.7 billion.
Buffett revealed his investment of about $5.6 billion in Activision on Saturday at Berkshire’s annual meeting. He said he could increase the stake to above 10%.
Activision shares end the day quoted at $78.06. That’s well below the $95 a share Microsoft offered on Jan. 18.
One of Buffett’s portfolio managers had assembled a $1.1 billion stake in Activision in late 2021. Microsoft and Activision did not immediately respond to requests for comment.
Buffett said he rarely makes these investments, a form of arbitrage, because they have to be big to make sense for his $712 billion company.
“Even though he spent $51 billion on equity, it’s a good way to deploy additional capital,” said Paul Lountzis, president of Lountzis Asset Management.
Source: CNN Brasil

I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.