Warren Buffett, the acclaimed investor and Chairman of Berkshire Hathaway (NYSE: BRKA, BRKB), has notably expanded the company’s extensive portfolio by acquiring additional shares in the Liberty SiriusXM Group (NASDAQ: LSXMA).
Implemented on January 17, the transaction encompassed the purchase of 1,591,178 shares at a trading price of $30.39, totaling over $85 million. This resulted in a change of Berkshire Hathaway’s overall holdings in the company to 22,889,612 shares, as shared in a post on X by stock market analyst Evan on January 18.
This acquisition occurs just weeks after Buffett’s previous purchase of the same stock.
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Previous acquisition and benefit to subsidiaries
Under the leadership of Warren Buffett, Berkshire Hathaway holds ownership stakes in over 65 companies across diverse sectors and has a notable history of engagement with media and entertainment enterprises.
Previous acquisition of Liberty Media stock signified a renewed interest in this industry. While in the past, The Washington Post was a key asset within Berkshire’s portfolio until it was sold to Jeff Bezos.
Following the first purchase of this Liberty SiriusXM Group stock, its subsidiaries, including Liberty Live Group (NASDAQ: LLYV.K), have posted strong numbers. Notably, Liberty SiriusXM Group experienced a significant upswing on Wall Street following its acquisition by Berkshire Hathaway this year.
Under the ownership of Liberty Media, the LLYV.K stock is anticipated to witness a substantial increase in its share price due to this investment, with analysts estimating a 30% upside as of the current assessment.
Sirius XM is another gainer
Sirius XM Holdings (NASDAQ: SIRI) continues to demonstrate resilience, as only 19% of its total sales, amounting to $6.67 billion during the first nine months of 2023, originate from advertising. In contrast, 77% of the revenue is derived from subscriptions. With relatively stable costs, the company is currently considered a compelling investment.
Although shares experienced a 10% decrease over the past year, SIRI surged by 20% following the Buffett acquisition.
Whether this renewed interest is a temporary or a long-term commitment to this industry from Buffett remains to be seen.
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