Unsuspecting Company Almost Bought Nintendo but Didn’t Like Gaming

In a recent chat, Bobby Kotick, who started Activision, shared an unexpected story. He mentioned that Charlie Munger from Berkshire Hathaway once thought about buying Nintendo. This idea came up during a time when Vivendi, a French company, was selling its part of Activision. Kotick often had Friday lunches with Munger, seeking advice on business matters.

During one of these lunches, Munger suggested that Berkshire could fund Activision’s buyback from Vivendi. He also floated the idea of purchasing Nintendo, which was valued at around $13 billion then, with $7 billion in cash reserves. Munger humorously noted that if the deal went bad after his time, people would just see it as the whim of an 82-year-old.

However, Munger wasn’t a fan of video games. He compared them to gambling, suggesting they preyed on people’s addictions. Kotick defended the industry, saying games bring joy and fun. Despite Munger’s reservations, he saw potential in the gaming sector. In the end, Berkshire didn’t buy Nintendo. Instead, Kotick and his partner, Brian Kelly, decided to buy back Activision themselves, inspired by Munger’s interest.

This story highlights how even companies like Berkshire Hathaway have considered investing in gaming. It also shows the challenges and perceptions the gaming industry faces among traditional investors. While the deal didn’t happen, it’s intriguing to think about what might have been if Berkshire had ventured into the gaming world.