Berkshire Hathaway Sells $1.2B Worth of VeriSign Shares, Warren Buffett's Stake Reduced to 9.6%

VeriSign shares fell 6.5% in pre-market trading after Warren Buffett's Berkshire Hathaway sold 4.3 million shares for $1.23 billion, reducing its stake from 14.2% to 9.6%. Berkshire may sell an additional 515,032 shares. VeriSign is a domain name registry service provider with a solid business model and a long-term appreciation gain for Berkshire. The stock has a Moderate Buy consensus rating on TipRanks with an average price target of $335.

In a significant move, Berkshire Hathaway, the investment conglomerate led by Warren Buffett, has announced the sale of approximately one-third of its stake in VeriSign, a domain name registration service company. The sale involves 4.3 million shares, priced at $285 per share, which is a 6.9% discount from the previous closing price of $305.98. The total transaction is estimated to be around $12.3 billion [1].

This sale marks a notable shift in Berkshire's investment strategy, as it has held VeriSign shares since 2012, achieving a return of over five times its initial investment. The decision to sell a portion of VeriSign's shares comes at a time when Berkshire Hathaway is also considering other strategic moves. The company has recently reduced its involvement in the board of directors of Kraft Heinz, signaling a potential withdrawal from daily operations. This reduction in participation, coupled with the sale of VeriSign shares, suggests that Berkshire may be looking to streamline its portfolio and focus on more liquid assets [1].

VeriSign shares fell 6.5% in pre-market trading after the announcement, reducing Berkshire's stake from 14.2% to 9.6%. The stock has a Moderate Buy consensus rating on TipRanks with an average price target of $335. The sale of VeriSign shares is expected to bring in approximately $12.5 billion, which Berkshire can reinvest in other opportunities. This liquidity will allow the company to explore new investment avenues and potentially acquire other companies or assets that align with its long-term strategy. The proceeds from the sale will also help Berkshire maintain its financial flexibility, enabling it to navigate market fluctuations and economic uncertainties [1].

The sale of VeriSign shares is not the only recent move by Berkshire Hathaway. The company has also been involved in other significant transactions, including a $5.7 billion private aviation financing deal. This diversification of investments indicates that Berkshire is actively managing its portfolio to maximize returns and mitigate risks [1].

VeriSign, Inc., a global provider of critical internet infrastructure and domain name registry services, reported that the second quarter of 2025 closed with 371.7 million domain name registrations across all top-level domains (TLDs), an increase of 3.3 million domain name registrations, or 0.9% compared to the first quarter of 2025. Domain name registrations also increased by 9.3 million, or 2.6%, year over year [2]. This growth in domain name registrations underscores the continued demand for VeriSign's services and may contribute to the company's long-term appreciation gain for Berkshire.

Overall, Berkshire Hathaway's decision to sell a portion of its VeriSign shares is a strategic move that reflects the company's commitment to optimizing its investment portfolio. By divesting from VeriSign, Berkshire is positioning itself to capitalize on new opportunities and ensure long-term growth. The sale also underscores Warren Buffett's reputation as a savvy investor who is always looking for ways to maximize returns and minimize risks.

References:
[1] https://www.ainvest.com/news/berkshire-hathaway-sells-33-verisign-stake-6-9-discount-2507/
[2] https://investor.verisign.com/news-releases/news-release-details/dnibcom-reports-internet-has-3717-million-domain-name