Warren Buffett’s holding company, Berkshire Hathaway (NYSE:BRK.B) bought nearly $1 billion U.S. worth of shares in Activision Blizzard (NASDAQ:ATVI) in the fourth quarter of 2021, just months before Microsoft (NASDAQ:MSFT) announced that it is buying the video-game maker for $68.7 billion U.S.

Berkshire Hathaway owns 14.66 million shares of Activision Blizzard valued at $975 million U.S. as of the end of 2021, according to regulatory filings.

Microsoft announced its intent to acquire Activision Blizzard in mid-January for $95 U.S. a share, sending the stock up 25% to $82 U.S. It is the biggest deal ever by a U.S. technology company.

Buffett is poised to notch a handsome profit should the deal close. The stock was trading as low as $56.40 U.S. per share in the fourth quarter after the California Department of Fair Employment and Housing filed a suit alleging that Activision and its subsidiaries fostered a sexist culture and paid women less than men.

Activision also said in November that it was delaying the releases of video games Diablo IV and Overwatch 2. And it was hit with disappointing reviews of its new game Call of Duty: Vanguard, released ahead of the holiday sales period.

Bill Gates, the former chief executive officer (CEO) of Microsoft, stepped down from the boards of both Berkshire Hathaway and Microsoft in 2020. Gates is a long-time friend of Buffett.