Warren Buffett, one of the famous and wealthiest investors alive, gave his own view on Microsoft’s acquisition of Activision Blizzard, stating that he believed the deal would go through. Earlier this year, shocking everyone, Microsoft announced that it was planning to acquire Activision Blizzard for just $70 billion. If implemented, it would be the biggest deal in the history of the gaming industry and give Microsoft ownership of huge franchises such as Call of Duty, World of Warcraft, Overwatch and many more. Given the magnitude of the deal, there has been some backsliding on the part of politicians and investors, leading some to believe that the deal could be brought down.
But Warren Buffett bet that the deal would be approved. Billionaire investor Berkshire Hathaway’s company boosted its position in the company from 2% to 9.5%, a position worth about $6 billion. The reason for doing so is that Activision’s stock is trading around $75 at the moment, and if the deal goes through, Microsoft will buy the company at $95 a share, creating a huge profit margin for investors. Some have speculated that the stock price is low because Wall Street thinks the deal will end, but that’s speculation. Earlier this week, shareholders voted to approve Microsoft’s acquisition of Activision Blizzard, meaning the deal will now need approval from regulators. If all goes smoothly and according to plan, the deal is expected to close by the summer of 2023. As of now, Activision is continuing its business as usual. earlier this week, Call of Duty: Modern Warfare II It’s officially announced and it’s likely to 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 takes control of the IP. As of now, fans will have to wait and see what happens. However, if top players like Warren Buffett express optimism about the deal, that looks favourable.
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[H/T Business Insider]