Warren Buffett says Berkshire holds 9.5% of Activision Blizzard stock in merger balance bet 2022-04-30 15:17:05

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Warren Buffett said on Saturday Berkshire Hathaway Its share has been increased Activision Blizzard In merger arbitrage, betting on it Microsoft The proposed acquisition of the video game company will be closed.

Buffett said at the company’s annual shareholder meeting that Berkshire now owns about 9.5% of Activision’s stock.

“Sometimes I’ll see a balancing deal and do it,” said Berkshire’s chairman and CEO. “Every now and then the odds seem to be in our favor, but certainly we can lose money in that company, fairly large amounts, depending on what happens if the deal goes awry.”

In January, Microsoft announced its intention to buy Activision For $95 per share. Activision closed at $75.60 per share on Friday.

Buffett said he has been buying more shares in Activision since the deal was announced as the stock is trading at less than Microsoft’s offer. Buying at these levels will result in a greater return if the position is closed.

“If the deal goes through, we make some money, and if the deal doesn’t go through, who knows what will happen,” Buffett said.

“We don’t know what the Department of Justice is going to do, we don’t know what the EU is going to do, we don’t know what the 30 other jurisdictions are going to do. One thing we do know is that Microsoft has the money,” she said.

In the last quarter of 2021, Berkshire Corporation first bought $1 billion worth of Activision Blizzard stock, in a bet that the company was undervalued.

Buffett said Berkshire ‘has no prior knowledge’ From Microsoft’s plan to buy the company when Berkshire made its initial investment.

Check out all coverage of CNBC Berkshire Hathaway’s annual meeting here.

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