Warren Buffett’s Berkshire Hathaway has increased its stake in SiriusXM to 32%. The move comes after John Malone’s Liberty Media deal, which combined its tracking stocks with the rest of the audio entertainment company. Berkshire Hathaway bought about 3.6 million shares for around $87 million in separate transactions from Wednesday through Friday.
The acquisition was part of a larger strategy following the Liberty Media transaction, part of Malone’s reorganization of his media assets. Berkshire Hathaway first bought into Liberty Media’s trackers in 2016. After the deal announcement, it began increasing its stake in SiriusXM’s tracking stocks at the beginning of 2024.
SiriusXM has faced challenges, including subscriber losses and shifting demographics. According to FactSet, only five out of 14 analysts covering it give it a buy rating. A JPMorgan analyst, Sebastiano Petti recently reopened coverage with an underweight rating.
Berkshire Hathaway raises SiriusXM stake
He expressed concerns about the company’s long-term growth prospects and its ability to appeal to a broader audience. The Liberty Media transaction reduced SiriusXM’s share count by 12%.
This may pause stock buybacks until 2027, negatively impacting the stock price. SiriusXM shares have dropped over 50% this year. In 2022, Berkshire Hathaway invested significantly in Paramount Global by buying nonvoting Class B shares.
The investment quickly soured, leading to a substantial loss. Buffett later reflected on the investment, noting the intense competition within the streaming industry and the difficulty of prioritizing consumer attention in an oversaturated market.
Berkshire Hathaway’s recent moves show a continued interest in the media sector. Despite market challenges, the company is focusing on strategic acquisitions.
