Warren Buffett bets on Microsofts Blizzard Activision Agreement, increases the position

Warren Buffett, one of the richest people in the world and a renowned investor, has given his opinion on the acquisition of Activision Blizzard by Microsoft, stating that he believes that the agreement will be carried out. Earlier this year, to everyone’s surprise, Microsoft announced that it planned to acquire Blizzard Activision for just $ 70 billion. If it is carried out, it will be the largest agreement in the history of the game industry and will grant Microsoft the property of mass franchises such as Call of Duty, World of Warcraft, Overwatch and many, many more. Due to the immensity of the agreement, there has been some rejection by politicians and investors, which leads some to believe that the agreement could be demolished.

Warren Buffett, however, has opted for the agreement to be approved. The company of the billionaire investor, Berkshire Hathaway, increased its position in the company 2% to 9.5%, a position worth 6,000 million dollars. Buffett made it clear that it was his decision to increase the position. “It’s my purchase, not the manager who bought it a few months ago,” said Buffett. “If the treatment takes place, we will earn some money.”

The reason to do this is that Activision shares quote around $ 75 at this time and, if the agreement is carried out, Microsoft will buy the company at $ 95 per share, creating a margin of considerable benefit for investors. Some have speculated that the price of the shares is low because Wall Street believes that the treatment will fail, but that is speculation. Earlier this week, shareholders voted to approve the acquisition of Blizzard Activision by Microsoft, which means that the agreement must now be approved by regulators. If everything goes well and as planned, the agreement is expected to close in the summer of 2023.

From now on, Activision continues to function as usual. Earlier this week, Call of Duty: Modern Warfare II was officially announced and it is likely to be one of the largest games of 2022, if not the number one in sales of the year. Microsoft has declared that you will probably keep Call of Duty in PlayStation in the predictable future once you get the control of the IP. From now on, fans will have to expect and see what happens. That said, if the main actors like Warren Buffett express optimism for the agreement, it sounds favorable.

Buffett writes to reporters to clarify Activision stake timeline

What do you think of the purchase of Blizzard Activision by Microsoft? Let me know in the comments below or contact me on Twitter @cade_onder.

Leave a Reply

Your email address will not be published. Required fields are marked *