Two entertainment leaders are Walt Disney (NYSE: DIS) and video game maker Activision Blizzard (NASDAQ: ATVI). There are key similarities between these companies, but only one can be the better buy.

Disney's stock is down 54% from its all-time high. The main culprit is lower profits due to heavy expenditures on streaming content. But Activision also looks attractive after falling 26% from its previous highs. In fact, Warren Buffett's Berkshire Hathaway acquired a small stake in the company in the fourth quarter of 2021, before Microsoft offered to buy the whole company for $68.7 billion early last year. 

There's a lot of skepticism that Microsoft's offer will pass the regulatory process. The European Union recently gave approval for the acquisition, but the U.S. Federal Trade Commission (FTC) has sued to block the deal. A U.K competition authority also moved to block it last month. At this point, it's best to consider buying Activision stock intending to hold it long term.

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Source Fool.com