Warren Buffett’s Berkshire Hathaway boosts stake in SiriusXM to 32% | Wilnesh News

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. Documents filed 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 Merging its tracking stock with other companies in the audio entertainment company. It’s part of Malone’s reorganization 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.

Buffett’s company first bought Liberty Media tracking shares in 2016 and began buying large amounts of SiriusXM tracking shares in early 2024 after the deal was announced, possibly as a form of merger arbitrage.

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.

Berkshire stock surged 8% on Monday after the company disclosed the information. However, the stock is still down more than 50% this year.

Berkshire’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 that he had exited all stocks 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, leading to fierce price wars.