Berkshire Hathaway sold off all its shares in Paramount at a loss. Warren Buffett admitted full responsibility for the decision. Paramount's stock has been declining since Berkshire first invested in 2022 due to issues such as a dividend cut and CEO exit. The company's struggles in the face of declining traditional pay-TV and competition in streaming led Buffett to question consumer priorities and the oversaturation in the streaming industry.
Netflix had an exceptional first quarter, surpassing expectations with a surge in new subscribers and revenue growth. However, concerns emerged due to lower guidance for the current quarter, reflecting potential headwinds from currency fluctuations and slowing subscriber growth. Netflix's content strategy shift and password sharing crackdown have been effective, driving revenue and growth. Despite the positive results, the company's valuation remains a concern, and its earnings call will be crucial in clarifying its future plans and addressing these concerns.
JPMorgan Chase CEO Jamie Dimon has endorsed Disney CEO Bob Iger in his proxy battle against activist investor Nelson Peltz of Trian Partners. Dimon praised Iger's leadership and industry expertise, while Peltz seeks board representation and changes to Disney's operations. Disney recently reported strong financial results, but Peltz remains critical. Dimon's endorsement signals support for Iger's strategy and confidence in his ability to navigate the evolving media landscape.
Paramount Global reported a quarterly profit but missed revenue expectations, with advertising and filmed entertainment underperforming. Paramount+ streaming service saw strong growth to 67.5 million subscribers and posted significant revenue increases, aiming for profitability in 2025. The company is considering sale options, but talks with Warner Bros. Discovery have stalled. Recent layoffs impacted 800 employees amidst declining TV media revenue.
