Warren Buffett disclosed that he sold off Berkshire Hathaway's entire stake in Paramount, incurring a loss on the investment.
"At Berkshire's annual shareholder meeting, Buffett took full responsibility for the decision to sell, stating, 'It was 100% my decision, and we've sold it all and we lost quite a bit of money.'"
Berkshire's holdings in Paramount amounted to 63.3 million shares as of the end of 2023, following a reduction of about a third in the fourth quarter of the previous year, according to recent filings.
The Omaha-based conglomerate initially acquired a nonvoting stake in Paramount's class B shares in the first quarter of 2022. Since then, the media company has faced challenges, including a dividend reduction, earnings shortfall, and the departure of its CEO. Paramount's stock declined by 44% in 2022 and another 12% in 2023.
Recently, Sony Pictures and private equity firm Apollo Global Management expressed interest in acquiring Paramount in a deal valued at approximately $26 billion. The company has also been engaged in acquisition discussions with David Ellison's Skydance Media.
Paramount has encountered difficulties in recent years due to declining revenue as more consumers opt out of traditional pay-TV and its streaming services continue to operate at a loss. The stock has declined by nearly 13% this year.
Buffett remarked that the disappointing outcome of the Paramount investment prompted him to reflect more deeply on how people choose to spend their leisure time. He has previously commented on the streaming industry, noting that the m
