Warren Buffett Bets $5.5 Billion On Activision Deal - is He Wrong?

Warren Buffet just took a massive bet AGAINST wall street on one of the largest mergers in U.S. history., and trust me, you want to hear this, because besides the popcorn value, there might be a very interesting money opportunity here.

Here is what I have in store for you. Microsoft announced its intention to acquire Activision on January at 95 dollars per share. Prior to the announcement the share price was 64 representing almost a 50% premium over the share price. Currently the share is trading at 75 per share, a discount of 20 from the purchase price, showing a gap of 26%. Compare it to twitter, which is trading at a gap of 10% below the purchase price, and there is only 1 conclusion: Wall Street Is Betting That Microsoft-Activision Deal Will Fail and pricing it as a more likely than not to fall through.

But, the grandpa from Omaha, is going against the market and betting HEAVY on this deal to happen. The problem is that most analysts don’t understand the video game industry, and they are missing a big piece, so I’ll show you why WB is right and how you can take the same trade alongside with him.