Warren Buffett Invests in Activision Blizzard When the Platform is Acquired

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The acquisition of Activision Blizzard represents Microsoft's ambition to take over the Metaverse . Although not interested in blockchain, billionaire Warren Buffett believes in this potential of this virtual space.
Warren Buffett invests in Activision Blizzard Denmark Phone Number List when the platform is acquired by Microsoft with Metaverse ambitions
In January, Microsoft announced an agreement to acquire Activision Blizzard, the world's leading video game publisher, for  $68.7 billion . Depending on the regulatory agencies, the deal could take until June 2023 to complete.




According to CNBC, since the deal was announced, Activision Blizzard stock has fallen in anticipation of regulators' intervention because of monopoly concerns.

However, legendary investor Warren Buffett took advantage of "bottom fishing" during this time. His company Berkshire Hathaway owns 9.5% of Activision Blizzard.

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As someone who is generally not interested in blockchain, Buffett is perhaps the name that has the least confidence in the metaverse.

However, CNBC sees his actions as a bet that Microsoft has the ability to complete the record deal, bringing profits to Berkshire Hathaway.

Ambition to lead the market.
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According to Bernstein analyst Mark Moerdler, Microsoft is well-positioned to be a leader in both the metaverse and games.

“Microsoft has many advantages with the metaverse. However, I don't think the company's acquisition of Activision Blizzard is just to focus on this market.

They are also looking for better solutions to achieve their goals in the video game business,” Mark Moerdler told CNBC.

Moerdler also noted that Microsoft has more than enough capacity to buy smaller game publishers. Acquiring a large company is the right decision, but the deal can take more than a year to go through, with approval from shareholders and regulators.

“We do not know how the Ministry of Justice, the EU or about 30 other regulatory bodies will decide. If there's one thing we all know, it's that Microsoft has the money," CNBC quoted Warren Buffett at the Berkshire Hathaway shareholder meeting at the end of April.

Microsoft laid out its vision for the development of the metaverse in its acquisition of Activision Blizzard. According to CNBC, the company wants to combine both the game and the metaverse into a dual model.

“Today, games have become the largest and fastest growing form of entertainment. Therefore, as the digital and physical worlds come together, it will play an important role in the development of metaverse platforms," ​​CEO Satya Nadella said in an email to employees. Microsoft.

Game is a very attractive and potential field. According to market research firm Newzoo, the global video game market will generate  $180.3 billion  by 2021. By 2024, Newzoo predicts revenue from this sector will grow to  $218.8 billion. .

Meanwhile, eMarketer estimates that 2.96 billion people worldwide played video games last year, including all forms. In addition, this number will reach 3.09 billion people by 2022, or about a third of the planet's population.

Microsoft Leverage.
In the past, Berkshire Hathaway has never invested in Microsoft. Buffett explained that he is a friend of Bill Gates, so he does not want to invest in your company. Buying Activision Blizzard shares as an indirect way for Buffett to invest in Microsoft and the gaming sector.

In 2001, Microsoft made its first foray into gaming with the release of the Xbox console. Currently, this model is in its 4th generation and achieved a sales increase of 14% in the first quarter of 2022.

In addition, the Microsoft Gaming division, led by Director Phil Spencer, owns 23 game design studios, software and hundreds of games.

"When the deal with Activision Blizzard closes, Microsoft Gaming will be the world's third-largest game company by revenue, behind Tencent and Sony," said Microsoft Gaming CEO Phil Spencer.

While the financial situation of technology companies is unstable, Microsoft maintains its position with strong revenue growth in the first quarter of 2022 thanks to demand from cloud services and software. These are the two core components of the game business and the metaverse.

In the long run, Gen Z (those born after 1995) and subsequent generations are the main user groups of the metaverse. According to a recent study by Razorfish and Vice Media Group, Gen Z spends twice as much time socializing with friends in the metaverse than in real life. Therefore, the metaverse is possessing a lot of potential in the future.

It's a virtual world where you can hang out with friends, build a tribe and go hunting together. This is the metaverse,” said Mike Sepso, CEO of Vindex, a company operating in the field of e-sports.