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Warren Buffett’s Berkshire Hathaway is increasing its stake in SiriusXM, now owning 32% of the satellite radio company. Berkshire purchased approximately 3.6 million shares for about $87 million in transactions last week. This decision came after John Malone’s Liberty Media completed a deal to combine its tracking Stocks with SiriusXM. Buffett’s firm initially bought Liberty Media’s trackers in 2016 and started investing in SiriusXM’s tracking Stocks in early 2024. The 94-year-old Buffett has not publicly discussed this investment, leaving it unclear whether he or his investing team made the decision.
SiriusXM has faced challenges such as subscriber losses and demographic shifts, making it a less favored stock on Wall Street. Only five out of 14 analysts covering the company gave it a buy rating. JPMorgan analyst Sebastiano Petti recently gave SiriusXM an underweight rating due to concerns about its long-term growth potential and ability to attract a wider audience. The Liberty transaction, which reduced share count by 12%, could also impact the company’s stock buyback plans until 2027.
Following Berkshire’s disclosure, SiriusXM’s stock rose 8%, though it remains down over 50% for the year. Berkshire’s last significant media investment was in Paramount Global’s Class B shares in 2022, which Buffett later revealed was sold at a loss. He cited the saturation of the streaming industry as a factor in the unsuccessful Paramount investment.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.