Warren Buffett's Berkshire Hathaway Set For $1B Windfall Following Microsoft-Activision Deal

On Tuesday, Warren Buffett’s Berkshire Hathaway BRK stood to make a profit of over $1 billion following the court’s decision to allow Microsoft MSFT to proceed with its acquisition of Activision Blizzard ATVI, Business Insider reports.

What Happened: Berkshire Hathaway, which owned nearly 50 million shares of Activision at the end of the first quarter of 2023, is set to make a significant profit if Microsoft’s acquisition goes through at its all-cash offer of $95 per share.

This is assuming that Berkshire Hathaway has held onto its stake in Activision Blizzard and hasn’t sold any shares since it reported owning a $4.2 billion position in the company at the end of the first quarter.

The court’s decision to block the Federal Trade Commission‘s bid to stop the deal led to a surge in Activision’s stock by as much as 12% on Tuesday.

See Also: Activision Blizzard Stock Soars After Microsoft Wins Court Permit For $69B Deal

Why It Matters: The acquisition of Activision Blizzard by Microsoft is a significant event in the gaming industry. It not only strengthens Microsoft’s position in the market but also potentially changes the dynamics of the industry.

The deal had faced opposition from the FTC and the U.K.’s Competition and Markets Authority (CMA), but recent developments have allowed it to move forward. The U.K. regulator had blocked Microsoft’s proposed acquisition, but an agreement was reached to temporarily suspend their ongoing London appeal over the $69 billion merger.

Microsoft’s acquisition of Activision Blizzard also aligns with its strategy of focusing on customer needs before developing features, as highlighted in a 2018 meeting by Microsoft's CFO, Amy Hood.

Read Next: Sony To Launch PlayStation 5 Slim For $399.99 In 2023, Microsoft Claims

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