Microsoft has acquired Activision

Why yes:

• Microsoft has decades of experience completing about a dozen M&A (https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Microsoft) per year.

• Berkshire bought Activision stock in 22Q1 to do arbitrage. Implication: Warren thinks the deal will go through.

• The deal has already been approved by Activision’s shareholders and Activision’s board of directors.

Why not:

• This isn’t like previous acquisitions, this would be the largest Microsoft acquisition to date and would make Microsoft the third largest videogame company in the world, so it’s likely to be rejected by antritust regulators because big tech is currently under intense scrutiny.

• Activision is also currently under scrutiny due to sexual harassment issues. Activision’s CEO was sued on May 4 by the city of New York in relation to how the deal was done and how it looks like an attempt by the CEO to escape related liabilities related ot that. These issues will combine with antitrust worries and derail the deal.