Microsoft Is Becoming the Berkshire Hathaway of Tech
On Tuesday, Microsoft (NASDAQ: MSFT) announced plans to acquire video-game giant Activision Blizzard (NASDAQ: ATVI) in an all-cash $75 billion deal, or $68.7 billion when factoring in Activision's net cash position. That equates to a price of $95 per share, up from around Activision's $65 share price on Friday -- but still below Activision's 52-week high of $104.53.
The deal would be Microsoft's biggest deal yet, nearly three times as large as the 2016 acquisition of LinkedIn and nine times the size of the ZeniMax Media acquisition in 2020, which brought over the Bethesda games portfolio.
If the deal passes antitrust regulators, it could be a brilliant move. In fact, the deal smacks of the value investing approach Warren Buffett practices at his conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Given Buffett's close friendship with former Microsoft Chairman Bill Gates, it's perhaps no surprise Microsoft is making smart acquisitions at reasonable prices in its mature stage of growth.
Source Fool.com
