Renowned investor Warren Buffett announced during Berkshire Hathaway’s annual meeting in Omaha, Nebraska, that the company has divested its entire stake in Paramount Global, marking the end of a two-year investment endeavor. The decision, attributed solely to Buffett, comes after Berkshire Hathaway disclosed a $2.6 billion stake in Paramount in May 2022, eventually becoming its largest shareholder.
Paramount has faced challenges amidst the competitive landscape of the streaming industry and a sluggish merger and acquisition market, leading to a downturn in its stock performance. The company reduced its dividend last year to focus on streaming investments.
Recent months saw Paramount engaged in sale discussions, including negotiations with a consortium led by David Ellison’s Skydance and a new proposal from Apollo and Sony. However, uncertainty looms over the outcome of these talks.
Additionally, Paramount underwent a leadership change, with CEO Bob Bakish being replaced by a trio of executives forming an “office of the CEO.”
Buffett, reflecting on the experience at the age of 93, acknowledged the lessons learned from investing in Paramount, particularly regarding the dynamics of the entertainment business and consumer leisure preferences. Despite gaining deeper insights, he admitted to financial losses incurred during the venture.
