OMAHA, Neb. — Warren Buffett revealed that he dumped Berkshire Hathaway’s complete Paramount stake at a loss.
“I used to be 100% liable for the Paramount resolution,” Buffett stated at Berkshire’s annual shareholder assembly. “It was 100% my resolution, and we have bought all of it and we misplaced fairly a bit of cash.”
Berkshire owned 63.3 million shares of Paramount as of the top of 2023, after chopping the place by a couple of third within the fourth quarter of final yr, in response to 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 tricky trip, experiencing a dividend minimize, earnings miss and a CEO exit. The inventory declined 44% in 2022 and one other 12% in 2023.
Paramount
Simply this week, Sony Photos and personal fairness agency Apollo International Administration despatched 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 in recent times, 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 yr, down almost 13%.
Buffett stated the unfruitful Paramount guess made him suppose extra deeply about what individuals prioritize of their leisure time. He beforehand stated the streaming trade has too many gamers searching for viewer {dollars}, inflicting a stiff value battle.