Buffett sold all of his Paramount shares and “lost a significant amount of money”

Buffett said at Berkshire's annual shareholders' meeting that “I am 100% responsible for Paramount's decisions.” “That was 100% my decision. And we sold everything and lost quite a bit of money.”

According to the latest documents submitted, Berkshire held 63.3 million Paramount shares as of the end of 2023 after reducing its position by about one-third in the fourth quarter of last year.

The Omaha-based conglomerate first purchased non-voting shares of Paramount's Class B shares in the first quarter of 2022. Since then, this media company has been in a difficult situation, with dividends cut, lost profits, and the CEO's resignation. What is the stock price44% drop in 2022Then,2023Further to12% declineI did it.

Sony Pictures and private equity firm Apollo Global Management sent a letter to the Paramount Board of Directors and expressed interest in acquiring the company for approximately $26 billion. The company is also in takeover negotiations with Skydance Media, led by David Ellison.

Paramount has been struggling in recent years, and since the number of consumers abandoning conventional pay TV has increased, and streaming services continue to be in the red, it is struggling with a decline in earnings. The company's stock was in the red again this year and fell nearly 13%.

Buffett said Paramount's bet, which didn't come to fruition, made people think more deeply about what they prioritize in their leisure time. He previously said that there are too many players in the streaming industry seeking money from viewers, causing fierce price competition.