Berkshire Hathaway ( (BRK.A) - Get Berkshire Hathaway Inc. Class A Report) CEO WarrenBuffett revealed the conglomerate owns a 9.5% share of ActivisionBlizzard ( (ATVI) from its initial share of 2%, the gaming company, which is expected to be acquired by Microsoft ( (MSFT) - Get Microsoft Corporation Report).
"We make some money if the transaction goes through," said a CEO at the company''s annual shareholder meeting.
Buffett believed that buying additional shares was his choice.
In April, a majority of Activision Blizzard shareholders approved a $69 billion all cash offer. This would be the largest technology merger and would give Microsoft control over video games such as Call of Duty, Candy Crush, and World of Warcraft.
The deal will last until the summer, and it will be examined by several government agencies, such as the Federal Trade Commission of the United States.
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Buffett said he does not know what the European Commission, the US Justice Department, or other market regulators will do.
Berkshire can''absolutely'' lose "major amounts of money" if the agreement falls.
He claims that Activision''s investment was "no bonanza" for Berkshire, which paid $77 a share in October and November 2021, and that Microsoft did not know that the company would take over.Microsoft''s bid for Activision is $95 per share.
According to a regulatory filing, the company received a "voluntary request for information" from the Securities and Exchange Commission (SEC) and a grand jury subpoena from the DoJ, both of whom appear to be related to their respective investigations into trading by third parties, including persons known to Activision Blizzards'' CEO in cryptocurrencies prior to the announcement of the proposed transaction.
Activision''s shares fell to $75.50 a share after its first quarter earnings sparked a drop in demand. The company reported net income dipped to $395 million or 50 cents per share from $619 million or 79 cents per share from a year ago.
Activision has faced significant problems after female employees accused tens of sexual harassment and misconduct, causing the stock to decline.