Warren Buffett
Gerald Miller CNBC
Warren Buffett’s Berkshire Hathaway bought about $ 1 billion worth of shares in Activision Blizzard in the fourth quarter, according to a regulatory dossier, before joining Microsoft to buy the video game publisher for $ 68.7 billion.
Berkshire owns 14.66 million shares worth $ 975 million by the end of 2021, documentation shows.
Microsoft announced its intention to acquire Activision Blizzard in mid-January for $ 95 per share, raising 25% to more than $ 82, although it has fallen slightly since then. This will be the biggest deal of an American technology company.
Buffett is ready to make a good profit if the deal is done. Shares rose just $ 56.40 in the fourth quarter after the California Department of Fair Employment and Housing filed a lawsuit alleging that Activision and its subsidiaries promote a sexist culture and pay women less than men.
Activision also said in November that it was delaying the release of Diablo IV and Overwatch 2. And it was hit with disappointing reviews for its new game Call of Duty: Vanguard, released the same month.
Bill Gates, co-founder and former CEO of Microsoft, retired from the boards of Berkshire and Microsoft in 2020. Gates is a longtime friend of Warren Buffett, chairman and CEO of Berkshire Hathaway. They rank fourth and sixth, respectively, among the richest people in the world, according to Forbes.
WATCH: Warren Buffett, Charlie Munger on Berkshire Hathaway’s Unique Management Style