- ORIGINAL NEWS
Buffett says Berkshire sold its entire Paramount stake: ‘We lost quite a bit of money’
- SUMMARY
Warren Buffett, the renowned investor, recently admitted to making a significant loss by selling Berkshire Hathaway’s entire stake in Paramount, a media conglomerate.
Buffett confessed that the decision to invest in Paramount was solely his, and he acknowledged the financial consequences.
Berkshire Hathaway had accumulated a substantial holding of 63.3 million shares in Paramount, but over time, Paramount faced a series of challenges.
Its dividend payments were reduced, earnings fell short of expectations, and the CEO departed.
Consequently, the stock price plummeted by 44% in 2022 and an additional 12% in 2023.
Paramount’s struggles stemmed from declining pay-TV subscriptions and the financial burden of its money-losing streaming services.
The company’s revenue has been dwindling, reflecting changing consumer habits as they shift away from traditional TV.
Despite recent takeover interest from Sony Pictures and Apollo Global Management, Paramount’s stock has continued to drop.
This неудачная инвестиция has led Buffett to reassess the evolving media landscape and the significance of leisure activities for consumers.
The streaming industry has become fiercely competitive, with multiple players vying for viewers’ attention and spending.
Buffett believes this intense rivalry has led to a price war, making it challenging for streaming services to turn a profit.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
Negative
“It was 100% my decision, and we’ve sold it all and we lost quite a bit of money.”
“Since then the media company has had a tough ride, experiencing a dividend cut, earnings miss and a CEO exit.”
“Paramount has struggled in recent years, suffering from declining revenue as more consumers abandon traditional pay-TV, and as its streaming services continue to lose money.”
“The stock is in the red again this year, down nearly 13%”