Buffet Company Bought Activision Shares Before Microsoft Acquisition

Warren Buffett’s Berkshire Hathaway acquired nearly $1 billion worth of Activision Blizzard stock before Microsoft agreed to buy the video game maker for $68.7 billion, according to a regulatory filing on Monday. ).

Berkshire said that, as of December 31, it owned 14.7 million shares worth about $975 million of the “Call of Duty” maker.

Microsoft announced its plan to purchase Activision Blizzard on January 18, in its biggest acquisition ever.

Activision shares are up 22.5% this year to close yesterday at $81.50, although they remain well below the proposed acquisition price of $95 a share, reflecting potential antitrust concerns.

Another prominent investor, Daniel Loeb’s hedge fund Third Point, bought 2 million shares of Activision in the fourth quarter.

Berkshire disclosed its stake in Activision in a filing detailing its investments in US-listed stocks as of December 31.

Investors closely monitor Berkshire’s investments to see where Buffett and his investment managers Todd Combs and Ted Weschler see value.

The records don’t say who bought and sold what, although Buffett usually deals in larger investments.

In the fourth quarter, Berkshire also increased its stake in oil major Chevron and reduced its allocations to healthcare companies including Bristol-Myers Squibb and Abbvie. Apple remains the largest holding in Berkshire’s common stock.

Stock sales and Buffett’s six-year hiatus from buying entire large companies contributed to the company’s record $149.2 billion in cash as of September 30, 2021, despite at least $21.9 billion. billion in share buybacks that year.