Activision shares rise after Buffett reveals 9.5% stake in company

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

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