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Buffett Continues to Buy Sirius XM (SIRI.US), Berkshire's Stake Rises to 33%

Market IntelThursday, Oct 31, 2024 10:30 pm ET

1min read

Warren Buffett's Berkshire Hathaway continues to increase its stake in Sirius XM (SIRI.US), according to a regulatory filing. Berkshire bought an additional $60.7 million worth of Sirius XM shares in the three days ending Thursday, bringing its total stake to 33.2% of the company's outstanding shares. Sirius XM also owns music streaming platform Pandora.

Berkshire became the largest shareholder of Sirius XM last month after Liberty Media, controlled by John Malone, spun off its 83% stake in Sirius XM and merged it with the independent tracking shares of the other part of Sirius XM, which Berkshire had already been the largest holder of.

Last month, Buffett bought a large stake in Sirius XM after selling his Bank of America shares, according to a regulatory filing from the enterprise group in mid-October, which showed it bought $86.73 million worth of shares in the three days and increased its total holdings in the company to 108.72 million shares. Berkshire has continued to increase its stake since then, buying over 1.5 million more shares.

Since the beginning of this year, Sirius XM's stock price has fallen more than half. Some analysts believe that Berkshire's multiple increases in its stake in Sirius XM may reflect the company's strategy to increase its investment portfolio in media and technology.

Sirius XM is a North American radio entertainment company that provides live, curated, and on-demand services through satellite radio, offering music, sports, drama, talk, news, and more, mainly relying on the car scenario to maintain stable profits. It was formed by the merger of Sirius Satellite Radio and XM Satellite Radio in 2008.

Sirius XM also acquired Pandora, the former music streaming king. According to its website, Sirius XM's revenue in fiscal 2023 reached $8.95 billion, with an EBITDA of $2.79 billion and a net profit of $1.26 billion, with a listening audience of 150 million and a subscription number of about 34 million.

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