Warren Buffett speaks through the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 4, 2024.
CNBC
OMAHA, Neb. — Warren Buffett revealed that he dumped Berkshire Hathaway’s entire Paramount stake at a loss.
“I was 100% responsible for the Paramount decision,” Buffett stated at Berkshire’s annual shareholder assembly. “It was 100% my decision, and we’ve sold it all and we lost quite a bit of money.”
Berkshire owned 63.3 million shares of Paramount as of the top of 2023, after chopping the place by about a third within the fourth quarter of final 12 months, based on newest filings.
The Omaha-based conglomerate first purchased a nonvoting stake in Paramount’s class B shares within the first quarter of 2022. Since then the media firm has had a powerful experience, experiencing a dividend minimize, earnings miss and a CEO exit. The inventory declined 44% in 2022 and one other 12% in 2023.
Paramount
Just this week, Sony Pictures and personal fairness agency Apollo Global Management sent a letter to the Paramount board expressing curiosity in buying the corporate for about $26 billion. The agency has additionally been having takeover talks with David Ellison’s Skydance Media.
Paramount has struggled lately, affected by declining income as extra customers abandon conventional pay-TV, and as its streaming providers proceed to lose cash. The inventory is within the crimson once more this 12 months, down almost 13%.
Buffett stated the unfruitful Paramount wager made him suppose extra deeply about what individuals prioritize of their leisure time. He beforehand stated the streaming trade has too many gamers in search of viewer {dollars}, inflicting a stiff worth struggle.