Activision shares rise after Buffett reveals Berkshire took 9.5% stake

Could 2 (Reuters) – Activision Blizzard Inc (ATVI.O) shares rose on Monday after Warren Buffett mentioned his firm Berkshire Hathaway Inc (BRKa.N) had taken a 9.5% stake within the online game maker, which Microsoft Corp (MSFT.O) has agreed to purchase for $68.7 billion.

Buffett revealed the roughly $5.6 billion stake on Saturday at Berkshire’s annual shareholder assembly and mentioned he could improve the stake above 10%. learn extra

Activision shares had been up $2.22, or 2.9%, at $77.82 in morning buying and selling, after earlier rising to $78.22.

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The worth stays effectively under Microsoft’s proposed $95 per share takeover worth for Activision, whose franchises embody “Name of Obligation” and “Sweet Crush,” reflecting investor skepticism that antitrust regulators will approve the merger.

Berkshire’s funding seems to replicate Buffett’s view that different buyers are too pessimistic the merger shall be accomplished.

Microsoft and Activision didn’t instantly reply to requests for remark.

Earlier than the merger was introduced on Jan. 18, certainly one of Buffett’s different portfolio managers at Berkshire had purchased about $1.1 billion of Activision shares, however Buffett mentioned the elevated funding was his personal. learn extra

“We wish to be very clear that it was Warren Buffett’s determination, … and he does not know what the Justice Division goes to do, he does not know what the (European Union) goes to do,” Buffett mentioned. “One factor we do know is Microsoft has the cash.”

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Reporting by Jonathan Stempel in New York; Modifying by Lisa Shumaker

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