Buffett Ups Stake in SiriusXM to 32%
$Berkshire Hathaway(BRK.B)$ $Berkshire Hathaway(BRK.A)$ , the investment giant led by Warren Buffett, has significantly boosted its stake in satellite radio company $Sirius XM(SIRI)$ to 32%.
According to filings with the U.S. Securities and Exchange Commission (SEC), Berkshire bought about 3.6 million shares between Wednesday and Friday last week, investing around $87 million.
Liberty Media Restructuring Sparks Move
This purchase comes in the wake of $Liberty Media Corp(LSXMR)$ 's recent restructuring, led by billionaire John Malone. In early September, Liberty merged its SiriusXM-related shares and spun off the Atlanta Braves baseball team into an independent public company. Berkshire also owns shares in the Braves, aligning with Malone’s broader strategy to reorganize his media empire.
Berkshire’s initial investment in Liberty Media dates back to 2016. In early 2024, the company began accumulating SiriusXM’s tracking shares, likely seeing merger arbitrage opportunities.
Although Buffett is now 94 years old, he has never publicly commented on this investment. It's unclear whether the decision was made by Buffett himself or his trusted portfolio managers, Ted Weschler or Todd Combs.
Challenges for SiriusXM
Despite Berkshire’s confidence, SiriusXM faces significant hurdles, including subscriber losses and unfavorable demographic trends. These headwinds have tempered Wall Street’s enthusiasm. FactSet data shows only 5 out of 14 analysts rate the stock as a “buy.” Meanwhile, JPMorgan analyst Sebastiano Petti recently gave it an “underweight” rating, raising concerns about the company’s long-term growth potential.
Adding to the pressure, Liberty Media's restructuring reduced SiriusXM’s share count by 12%, which may halt share buybacks until 2027. This pause could weigh on the stock price. Although SiriusXM shares briefly surged over 9.3% following Berkshire’s increased stake, the stock is down more than 50% year-to-date.
Investment Lessons from Paramount
This isn’t Berkshire’s first foray into media. In 2022, it bought Class B shares of $Paramount Global(PARA)$ , only to sell them at a loss earlier this year.
Reflecting on that failure, Buffett said the experience made him reconsider what consumers truly value during their leisure time. He pointed to cutthroat competition in streaming as companies battle for viewers, triggering intense price wars.
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