Activision Blizzard (NASDAQ:ATVI) stock is on the move Tuesday following news of an investment in the game developer and publisher by Berkshire Hathaway (NYSE:BRK.A,BRK.B).
Source: Eric Broder Van Dyke/Shutterstock.com
A recent U.S. Securities and Exchange Commission (SEC) filing from Warren Buffett’s Berkshire Hathaway reveals the company’s various trades during the most recent quarter. That includes it picking up shares of ATVI stock shortly before Microsoft (NASDAQ:MSFT) agreed to acquire the company.
Berkshire Hathaway acquired a total of 14,658,121 shares of ATVI stock for a total of about $975.21 million. That means the firm spent about $66.53 per share to acquire its stake in Activision Blizzard.
Once the deal with Microsoft was announced, ATVI stock took off and last closed at $81.50 per share. That’s a 22.5% gain compared to the price that Berkshire Hathaway acquired the shares for. At a value of about $1,194,636,861, that means that Berkshire is looking at a potential $219.43 million profit.
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Of course, Berkshire Hathaway could gain even more than that if the Microsoft deal comes to a close. MSFT is offering $95 per share for ATVI stock in the acquisition deal. That would place a value of about $1,39 billion on the shares held by Berkshire. That would be a profit of $417.31 million for the investment firm.
There’s plenty of other stock investments made by Berkshire Hathaway during the most recent quarter. You can check out some of its biggest trades by following this link!
ATVI stock is up slightly as of Tuesday morning and is up 21.1% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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