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Warren Buffett, 9.5% of the shares Bet to Microsofts acquisition

Warren Buffett Bought 9.5% of Activision | Full Arbitrage Analysis
Warren Buffett said that he owns a 9.5% stake in Activision Blizzard.

On April 30 (local time), Buffett announced that he has increased his stake in Activision Blizzard to 9.5%at the annual shareholders’ meeting of Buchee Hesway. This is because Buffett believes Microsoft’s acquisition of Activision Blizzard will be finalized and purchased a stake in arbitrage.

Activision Blizzard’s current stock price is under $ 95 per week, the proposal of Microsoft’s acquisition. On the 29th, the last chapter in April, it was finished at $ 75.60 per share. Buffett purchased an active $ 1 billion in Activision Blizzard stock in the fourth quarter of 2021. Buffett said he did not know about Microsoft’s acquisition of Activision Blizzard at the time.

Buffett also mentioned the possibility that the bet would fail. “I will make money if the deal is successful, but if not, who knows what will happen,” he said. One thing is certain is that Microsoft has money. ”

Microsoft’s acquisition of Activision Blizzard is somewhat increasing due to various noise, such as the declaration of regulatory regulatory regulatory, demand for strong investigations by US senators, and capturing internal rich trading.

First, on the day of the announcement of the acquisition of Activision Blizzard, the US Federal Trade Commission (FTC) and the US Justice Department announced that they will begin a joint investigation to revise the M & A guidelines in the United States. The market expects the mergers and acquisitions by large companies to prevent anti -competitive M & A.

Also, on March 31, US senators, including Bernie Sanders, sent a letter to the FTC to order Microsoft’s acquisition of Activision Blizzard. Their problem is the possibility of avoiding ‘responsibility’ by Barbie Cotic Activision Blizzard.

Cotik is known to have been aware of his sexual violence and sexual discrimination culture for a long time. In the letter, the lawmakers stressed that “if Cotik lacks the fulfillment of responsibility, the acquisition of Microsoft will not be accepted.” It is argued that the acquisition should be carried out after the proper knot of the responsibility of the Cottic responsibility.

Furthermore, the US Department of Justice and the Securities and Exchange Commission (SEC) is investigating the situation of insider transactions surrounding Microsoft’s acquisition of Activision Blizzard.

The authorities have begun investigating three local investors, including Barry Dealer, David Gefen, and Alexander von Furstenberg, to buy an optional agreement to buy Activision Blizzard stocks for $ 40 per share before the acquisition announcement. The option contract is a contract that allows you to buy stocks at a specific price within the specified period. The three are suspected of signing a contract before the stock price rises in advance.

Barry Dealer, the core of the investigation, is the chairman of the US entertainment company Interactive Corporation (IAC) and leads to an industry. Gefen is the founder of the famous local record label, The Eochilum Record. Bobby Cotic Activision Blizzard and three investors are also intertwined with each other.

Cotick and the dealer are both members of the Coca -Cola board of directors and are known to have private acquaintances. The dealer and Gefen are also old friends who started their career. Alexander von Furstenberg is also a brush son of a dealer president.