Investment Guru Warren Buffett Missed Out on Gains From the Activision Stock After US Court Green Lighted the $69 Billion Acquisition Deal With Microsoft

The acquisition of Activision Blizzard for $69 billion might be the biggest win for Microsoft this year. The taste of this victory becomes sweeter as the Xbox makers also triumphed over the opposition in court over this deal. This deal will bring fan-favorite series like Call of Duty and Overwatch under the Xbox banner. Furthermore, many investors also gained profits after the deal was green-lit, including live streamer Amouranth.

However, one person who missed out on gaining profits was the investment guru Warren Buffett. He has made a name for himself in the business world by leading Berkshire Hathaway and his multiple successful investments. However, Buffett decided to let go of gains from Activision stock at the wrong time.

Warren Buffett gave up the Activision stock at the wrong time

In a recent regulatory filing, Buffett’s Berkshire Hathaway reported a 70% sale of its investment in Activision Blizzard stock. While the March 2023 numbers show 49.4 million shares of Activision, the July 2023 numbers show only 14.7 million shares. However, these 14.7 million shares of Activision are worth $1.24 billion. While Buffett is yet to give out any official statement, his actions show that the investor had little faith in Microsoft winning the case.

The spike in the price of Activision Blizzard came in after the results of the FTC vs Microsoft case. The court ruled in favor of the Xbox makers, green lighting their deal with Activision Blizzard. The console maker was also looking to finalize the deal as soon as possible. Activision’s new parent company Microsoft has removed Activision Blizzard stock from the markets in an attempt to finish the deal and escape a fine.

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While Buffett has pulled back on the stocks at the wrong time, he was supportive of Activision Blizzard in the past. He had invested in the studio in late 2021. Furthermore, he said to shareholders, “One thing we do know is Microsoft has the money,” pointing out the deal as a successful one for investors if completed.

However, Buffett’s current stake in Activision Blizzard is the same size at which he bought it, implying he decided to exit the arbitrage bet. What are your thoughts on Buffett losing out on possibly millions in gains? Let us know in the comments section below.

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