Berkshire Hathaway Cuts Its Activision Stake From 6.7% To 1.9%
Berkshire Hathaway, an investment firm owned by Warren Buffet, has recently reduced its stake in the gaming company Activision. Earlier, Berkshire Hathaway had a 6.7% stake in the Activison company, which is now reduced to 1.9% only.
The details of this reduction in the stake were revealed in a recent regulatory filing made by the company. Although no details are shared about the reason behind this move, the Microsoft-Activison deal likely is to blame. The deal was stopped from concluding after the FTC filed a case in the local court.
On 31st December 2022, the stake of Berkshire Hathaway was around 6.7%, but as per the regulatory filing on 30th June 2023, it now stands at 1.9%.
Activision And Microsoft Deal Is Close
The timing of this report is also very important, as Activision is very close to being acquired by Microsoft. The deal that will see the gaming company become a part of Microsoft is worth close to $69 billion.
The deal was supposed to be concluded many months ago, but it appears that the Federal Trade Commission is not happy with this acquisition. According to the FTC, the company behind 'Call of Duty' & several other famous games shouldn't be acquired by Microsoft on antitrust grounds.
Earlier, the FTCs requested to stop or at least delay the acquisition of Activision, but the request was denied. Now, the FTC has filed an appeal which means more legal trouble is ahead before we see the end of the deal.
Despite all the things that are going wrong for the Activison Blizzard Inc, the company's stock was still 3% higher for the day. This is a sign of the investors' confidence in Activison and the fact that the gaming company will indeed be acquired by Microsoft.
However, Berkshire Hathaway's reduction of its stake in Activision is also a sign that the investment firm is now less interested in the gaming company.