OMAHA, Neb. – Warren Buffett announced he has exited Berkshire Hathaway’s entire business Of highest importance Use at a loss.
“I was 100% responsible for Paramount’s decision,” Buffett said at Berkshire’s annual shareholder meeting. “It was 100% my decision and we sold everything and lost a lot of money.”
Berkshire owned 63.3 million shares of Paramount at the end of 2023 after the company reduced its stake by about a third in the fourth quarter of last year, according to latest filings.
The Omaha-based conglomerate first purchased a non-voting stake in Class B Paramount shares in the first quarter of 2022. Since then, the media company has endured a difficult time, suffering a dividend cut, profit misses and the departure of its CEO. The stock fell 44% in 2022 and another 12% in 2023.
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Just this week, Sony Pictures and private equity firm Apollo Global Management sent a letter to Paramount’s board expressing interest in acquiring the company for about $26 billion. The company also held acquisition talks with David Ellison’s Skydance Media.
Paramount has struggled in recent years, suffering declining revenue as more consumers abandon traditional pay-TV and its streaming services continue to lose money. The stock is also in the red this year, down almost 13%.
Buffett said the unsuccessful Paramount bet made him think more deeply about what people prioritize in their free time. He previously said that there were too many players in the streaming industry seeking viewer dollars, leading to a fierce price war.
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2024-05-04 20:17:26
www.cnbc.com
