Berkshire Hathaway Sells Paramount Stock, Experiences Significant Loss

Billionaire Warren Buffett Takes Responsibility for Berkshire Hathaway’s Losses After Selling Paramount Shares

During Berkshire Hathaway’s annual shareholder meeting on Saturday, Warren Buffett revealed that his investment company had offloaded its shares in Paramount, resulting in a significant loss. Buffett took full responsibility for the decision, stating, “It was 100% my decision, and we’ve sold it all, and we lost quite a bit of money. That happens in this business.”

In May 2022, Berkshire purchased a $2.6 billion stake in Paramount, making it the largest non-voting shareholder of the company with over 91 million shares. However, by the end of Q4 2023, Berkshire had sold off 63.3 million Class B shares, worth around $800 million at the time.

The decision to sell off the Paramount shares came as the entertainment company faced challenges in the streaming industry and a shift away from traditional cable media. Last year, Paramount slashed its dividend and laid off approximately 800 employees despite the success of Super Bowl LVIII.

Following the sale of its shares, Berkshire Hathaway reported a loss, prompting Buffett to reflect on the experience. “Owning Paramount made me think even deeper… I think I’m smarter now than I was a couple of years ago, but I also think I’m poorer because I acquired the knowledge in the manner I did,” Buffett shared during the meeting.

Despite the setbacks, Paramount reported a strong Q1 2024, with a 51% year-over-year revenue increase on Paramount+ and record-breaking viewership numbers for Super Bowl LVIII. The company has not publicly commented on potential bids or acquisitions, but with interest from Sony Pictures and Apollo Global Management, the future of Paramount remains uncertain.