Warren Buffett, the esteemed chairman and CEO of Berkshire Hathaway, exudes joy as he engages in a game of bridge during the annual shareholders meeting in Omaha, Nebraska on May 5, 2019.
Nati Harnik | AP
Berkshire Hathaway, led by Warren Buffett, has significantly reduced its stake in Activision Blizzard as Microsoft’s acquisition of the video game company nears completion.
The conglomerate, based in Omaha, Nebraska, disclosed in a recent 13G filing that it now holds a 1.9% stake in Activision with 14,658,121 shares. This is a decrease from its 6.3% stake at the end of March and 6.7% stake at the end of 2022.
Last week, Activision’s stock price surged over 9% after news broke that the Federal Trade Commission failed to block Microsoft’s $68.7 billion acquisition of the company. Microsoft’s appeal against U.K. regulators’ block was granted a two-month pause on Monday.
As of Monday’s closing, Activision’s stock was valued at $93.21 per share. Microsoft announced its plans to purchase Activision for $95 per share in January 2022.
Warren Buffett, known as the “Oracle of Omaha,” previously revealed that his investing lieutenants, Ted Weschler and Todd Combs, acquired a stake in Activision in October and November 2021 with an average cost of $77 per share.
Buffett has increased his holding in Activision as a merger arbitrage play, anticipating the successful completion of Microsoft’s acquisition.
Buffett and his longtime business partner Charlie Munger have been involved in merger arbitrage deals, referred to as “workouts,” for the past five decades.
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