according to deposit Late Monday with the Securities and Exchange Commission, Berkshire Hathaway (BRKB) Bought nearly 14.7 million shares Activision Blizzard (ATVI) In the fourth quarter of 2021, the stake was valued at approximately $975 million at the time, with an average price of $66.53 per share.
But Activision Blizzard is now trading at around $81.50 per share Microsoft (MSFT) Nearly $70 billion deal, announced last month. That means Berkshire’s stake is now around $1.2 billion, which is working towards a quick 22.5% gain.
And if the deal is approved, Berkshire could achieve even more. Microsoft’s bid for Activision Blizzard values the company at $95 a share in cash.
The Activision Blizzard investment comes a little out of Berkshire’s left hand, given that Buffett is more known for buying stakes in huge, high-value businesses such as banks and consumer staples like Habib Buffett. Coca Cola (KO)and oil stocks.
However, prior to the acquisition of Microsoft, Activision Blizzard was also of the classic kind, a favorite value stock that Buffett loved. Activision Blizzard shares are down nearly 30% in 2021 due to a sexual harassment scandal The release of several major games has been delayed.
And over the past few years, Berkshire has made more moves in technology. An apple (AAPL) It is now the company’s largest investment and Berkshire has a small stake in Amazon (AMZN) and cloud software company snowflake.
Nor is it clear whether Buffett was the driving force behind the decision to invest in Activision Blizzard or if the call was made by one of the investment assistants who manage Berkshire’s massive portfolio with Buffett: Ted Weschler and Todd Combs. Combs is also the CEO of Berkshire-owned Geico.
Berkshire has no investment in Microsoft, although Buffett is a close friend of Microsoft co-founder Bill Gates.
Buffett stepped down as Member of the Board of Trustees of the Bill & Melinda Gates Foundation Last year, shortly after Bill and Melinda announced plans to divorce. gates resign from the boards for both Microsoft and Berkshire Hathaway in 2020.