Buffett "Holds 9.5% of Activision Stock... Betting on MS's Acquisition Success"

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Warren Buffett, chairman of Berkshire Hathaway, known as the "investment genius," revealed that he holds a partial stake in the famous game company Activision Blizzard (hereinafter Activision) and plans to increase his holdings, betting on the successful acquisition of Activision by Microsoft (MS).

According to CNBC on the 30th (local time), Buffett stated at the Berkshire Hathaway annual shareholders meeting held in Omaha, Nebraska, "We hold a 9.5% stake in Activision," and added, "We are betting that MS's acquisition of Activision will be successful and are increasing our stake in the company for arbitrage purposes." He further emphasized, "Even after MS announced the acquisition of Activision, the stock price has remained significantly below MS's offer price, so we are buying more shares."

Earlier, Berkshire Hathaway first purchased about $1 billion (approximately 1.26 trillion KRW) worth of Activision shares in the fourth quarter of last year. Buffett had previously stated that he was unaware of MS's plans to acquire the company at that time.

Subsequently, MS announced in January this year that it would acquire Activision for $95 per share, totaling $68.7 billion. However, on the 29th, Activision's stock closed at $75.60, significantly below the acquisition offer price. Buffett explained, "If our stake in Activision exceeds 10%, we will report it to the securities authorities. If the acquisition deal goes through, we will make some money. If it doesn't, who knows what will happen."

Buffett also said, "We don't know what the U.S. Department of Justice (which is reviewing the acquisition) will do, nor what the European Union (EU) or the other 30 countries will do," but emphasized, "One thing we know is that MS has the money."

This content was produced with the assistance of AI translation services.