Warren Buffett reveals $ 2.6 billion investment in Paramount Global

Warren Buffett’s Berkshire Hathaway said Monday in a statement that it acquired a stake in Paramount Global after buying $ 2.6 billion worth of Class B shares.

The completion of SEC Form 13F showed that Buffett’s company bought nearly 69 million shares of Paramount Global in the first quarter and also revealed that it has also bought other shares in companies such as Citibank. In total, the investment giant bought shares worth $ 51 billion in the first three months of 2022.

Buffett, who also owns stakes in entertainment companies including Apple and Amazon, is buying Paramount Global, formerly ViacomCBS, after the company’s first quarter 2022 results included customer earnings through its flagship streaming services Paramount + and Tubi. , which exceeded expectations. But Wall Street’s skepticism about limits on streaming profits kept stocks across the industry in the red throughout the year.

Paramount Global Shares continues to be majority controlled by Shari Redstone and the Redstone National Amusements family.

At a virtual investor meeting in February, Paramount CEOs, including CEO Bob Bakish, presented the company’s future content proposal and strategy, which includes large and growing investments in programming for direct-to-consumer businesses.

Paramount (which also currently owns CBS, Showtime, Nickelodeon, MTV, Comedy Central, BET, Pluto TV and Simon & Schuster) is also selling assets to raise funds to take over CBS Studio Center, Black Rock and CNET. A deal was reached last year to sell Simon & Schuster to Bertelsmann’s Penguin Random House, although the Justice Department complained it blocked the merger.

Investors are wary of streaming narratives in the entertainment industry, highlighted by the lack of Netflix shares following weak quarterly quotes.

Buffett’s move precedes Paramount Global’s annual pre-launch for TV commercial buyers in New York. The presentation of the company will take place on Wednesday afternoon.