Berkshire Hattaway Bought Nearly $1 Billion Worth of Activision Shares

Daniel Attoe
Daniel Attoe

Updated · Feb 15, 2022

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Warren Buffet’s investment company Berkshire Hattaway acquired 14.7 million shares Activision shares in December last year.

Activision Blizzard Stake

A regulatory filing revealed that Berkshire bought nearly $1 billion worth of shares from Activision Blizzard before Microsoft bought the company. 

As of December 31, Warren Buffet’s multinational investment conglomerate owned 14.7 million shares of the game publishing company. The valuation of the shares at that time stood at $975 million.

In January, Microsoft announced that it would acquire Activision Blizzard for nearly $69 billion, a record gaming industry deal. The announcement sent the company’s stock up by 25% to more than $82, but that has since subsided.

Berkshire Hattaway’s decision to purchase a stake in Activision is a move from Chairman and CEO Warren Buffet’s usual stance. The billionaire investor is famous for avoiding tech investments, only owning Apple, Amazon, and Snowflake stock.

Berkshire’s stake in Apple is responsible for nearly 50% of its unrealized gains. It made a modest $1 billion initial investment in the smartphone giant but has gone on to accumulate more shares. Currently, Berkshire owns over 5% of Apple.

Microsoft’s mega-deal acquisition of Activision is yet to clear the regulatory hurdle. To plead its case, the company has made a series of pledges to antitrust regulators. These include allowing software developers to make their choice of payment methods instead of proprietary ones.

Berkshire will be hoping to realize a sizeable profit if the deal closes.

Sources.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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