Warren Buffett's Berkshire's Missed Gains: Buffett Sells Majority of Activision Blizzard Stake Before Microsoft Deal Approval
Portfolio Pulse from Anusuya Lahiri
Warren Buffett's Berkshire Hathaway sold 70% of its stake in Activision Blizzard in Q2, missing out on potential gains from Microsoft's approved takeover of the video game maker. Berkshire's remaining Activision stake is the same size as before Buffett started buying, suggesting he has exited the arbitrage bet. Microsoft has also made deals with Nvidia, Nintendo, and Sony to discourage opposition against the merger.
July 18, 2023 | 12:26 pm
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NEGATIVE IMPACT
Activision Blizzard's stock may be impacted by Berkshire Hathaway's decision to sell a large portion of its stake.
Berkshire Hathaway's decision to sell a large portion of its stake in Activision Blizzard could potentially impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
Berkshire Hathaway sold a significant portion of its Activision Blizzard stake, potentially missing out on gains.
Berkshire Hathaway's decision to sell a large portion of its Activision Blizzard stake before the Microsoft deal approval could have resulted in missed gains, potentially negatively impacting its short-term performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Microsoft's approved takeover of Activision Blizzard could potentially boost its stock in the short term.
Microsoft's approved takeover of Activision Blizzard could potentially boost its stock in the short term, especially considering the deals it has made with Nvidia, Nintendo, and Sony to discourage opposition against the merger.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80