(Deadline) Shares of Paramount Global rose more than 9% on Tuesday after a filling showed that Warren Buffet’s Berkshire Hathaway acquired a $2.6 billion stake.
Berkshire acquired close to $69 million Class B shares in the company in the first quarter. The Warren Buffet company also held stakes in other entities, including Citibank, taking the total buys in the quarter to $51 billion.
The addition of Paramount, formerly ViacomCBS, happens at a time investors have shunned the stock, together with peers in the streaming sector, on subscriber growth worries. Paramount showed subscriber gains for its streaming service Paramount+, as well as Tubi.
Paramount also, at its investor meeting in February, outlined key offerings and strategy. These included an ambitious and growing investment in programming in the direct-to-consumer business. The company is also eyeing an annual upfront pitch to TV ad buyers in New York.
Buffet’s addition adds optimism for a stock that has been declining this year. The company has been selling assets this year to raise cash.
PARA: NASDAQ is up +9.92%.
