Famed investor Warren Buffett’s Berkshire Hathaway knocked Paramount Global shares higher after disclosing that it has raised his stake in the media company.
In an SEC filing, the so-called “Oracle Of Omaha’s” holding company revealed a ownership position of 91.2 million Paramount shares worth $1.7 billion as of the end of the third quarter.
The stock is trading up over 9% at $20.20 on the news, outpacing the broader market. Media and entertainment shares have been laggards this year on streaming jitters, a soft ad market and cloudy economic outlook.
Berkshire disclosed its initial stake in August, revealing an investment of 69 million shares worth $2.6 billion. This is significant increase. Building up a position indicates faith in the company’s prospects, despite Wall Street’s increased skepticism of streaming as a business. There’s also the potential for some kind of deal in a constantly shifting landscape. Paramount Global’s stock remains fully majority controlled by Shari Redstone and the Redstone family’s National Amusements.
Buffett’s other media holdings include a big chunk of Apple stock, as well as stakes in Activision Blizzard, Amazon, Charter Communications Liberty Media and Liberty Latin America.
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