Warren Buffett Bets Microsoft’s Activision Blizzard Deal Will be Approved, Increases Position

Warren Buffett, one of the wealthiest people alive and renowned investor, has given his own insight into Microsoft’s acquisition of Activision Blizzard, stating that he believes the deal will go through. Earlier this year, much to the shock of everyone, Microsoft announced it was planning to acquire Activision Blizzard for just shy of $70 billion. If it goes through, it will be the biggest deal in the history of the gaming industry and give Microsoft ownership of massive franchises like Call of Duty, World of Warcraft, Overwatch, and many, many more. Due to the immensity of the deal, there has been some pushback from politicians and investors, leading some to believe the deal could get shot down.

Warren Buffett, however, has bet that deal will be approved. The billionaire investor’s company, Berkshire Hathaway, increased its position in the company from 2% to 9.5%, a position worth about $6 billion. Buffett made it clear that it was his decision to increase the position. “It is my purchase, not the manager who bought it some months ago,” said Buffett. “If the deal goes through, we make some money.” 

The reason for doing this is because Activision’s stock is trading around $75 right now and if the deal goes through, Microsoft will purchase the company at $95/share, creating a sizable profit margin for investors. Some have speculated that the price of the stock is low because Wall Street believes the deal will fall through, but that’s speculation. Earlier this week, shareholders voted to approve the Microsoft’s acquisition of Activision Blizzard, meaning the deal will now need to approved by regulators. Should everything go smoothly and according to plan, the deal is expected to close by summer 2023. 

As of right now, Activision is continuing business as usual. Earlier this week, Call of Duty: Modern Warfare II was officially announced and it’s likely it will be one of the biggest games of 2022, if not the number one seller of the year.Microsoft has stated that it will likely keep Call of Duty on PlayStation for the foreseeable future once it gains control of the IP. As of right now, fans will have to wait and see what happens. With that said, if major players like Warren Buffett are expressing optimism for the deal, it sounds favorable.

What do you think of Microsoft’s purchase of Activision Blizzard? Let me know in the comments below or hit me up on Twitter @Cade_Onder.

[H/T Business Insider]