Warren Buffett meets with Berkshire Hathaway shareholders ahead of the annual meeting on May 3, 2024 in Omaha, Nebraska.
David A. Grogan
Warren Buffett’s Berkshire Hathaway Continue to increase its stake SiriusXMcurrently owns 32% of the New York-based satellite broadcasting company.
The Omaha, Nebraska-based conglomerate reportedly purchased about 3.6 million shares for about $87 million in separate transactions between Wednesday and Friday. Filings with the U.S. Securities and Exchange Commission late Friday.
Berkshire ups the stakes as billionaire John Malone’s Liberty Media closes deal early September Merge its tracking stock with other shares of audio entertainment companies. It’s part of Malone’s shakeup of his vast media empire, which also includes Split Merged the Atlanta Braves baseball team into a separate public company in which Berkshire also holds a stake.
BuffettThe firm first bought Liberty Media tracking stock in 2016 and began buying large amounts of SiriusXM tracking stock after the deal was announced in early 2024, possibly as a merger arbitrage move.
The 94-year-old has never mentioned the bet publicly, and it’s unclear whether he was behind it or if it was the billionaire’s investment deputy Ted Weschler or a trustee. By Todd Combs.
not well liked
SiriusXM has been struggling with subscriber churn and adverse demographic changes, and it’s not a popular stock on Wall Street. According to FactSet, only 5 of 14 analysts covering the company give it a buy rating.
JPMorgan analyst Sebastiano Petti last week reiterated an underweight rating on SiriusXM, citing concerns about the broadcast giant’s long-term growth and its ability to successfully target a broader demographic.
Meanwhile, analysts said the Liberty deal, which resulted in a 12% reduction in share count, could lead to the company suspending share buybacks until 2027, which could put pressure on the stock price.
SiriusXM
Berkshire shares surged 8% on Monday after the company disclosed the information. However, the stock is still down more than 50% this year.
Berkshire Hathaway’s last major investment in a major media company was in 2022, when the group bought Paramount Worldwideof Class B shares. Investments soured quickly. Buffett revealed in May this year He exited the entire stock at a huge loss.
Buffett said Paramount’s fruitless bet made him think more deeply about what people prioritize in their free time. He has previously said that too many players in the streaming industry are seeking audience revenue, triggering fierce price wars.
