Should You Really Follow Warren Buffett Into Activision Blizzard Stock?
Microsoft's (NASDAQ: MSFT) pending acquisition of top video game producer Activision Blizzard (NASDAQ: ATVI) is currently working its way through the regulatory approval process. Many on Wall Street remain skeptical that one of the largest deals in tech history will get approved. Activision's stock price, currently hovering around $74, has traded at a substantial discount to Microsoft's $95-per-share offer since the acquisition was announced in January.
Warren Buffett believes the merger will get approved. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) held 68 million shares of Activision at the end of the second quarter. If the deal is completed, Berkshire will net over $1 billion in profit.
Buying shares of Activision right now might seem like an easy 28% return when the acquisition finalizes, which looks more enticing in a bear market for stocks. Still, the game maker has reported weak revenue results this year, and the stock could have more downside if the deal is rejected. Here's what you need to know.
Source Fool.com
