Warren Buffett's Berkshire Hathaway has increased its stake in SiriusXM, now owning 35.4% of the satellite radio company. This move comes as the conglomerate acquired approximately 2.3 million more shares for around $54 million, according to a recent filing with the U.S. Securities and Exchange Commission. The transactions, completed through Monday, reflect Berkshire's continued interest in the radio company despite challenges faced by SiriusXM in the past year.
SiriusXM's stock has risen about 5% since the start of the new year, showing signs of recovery following a challenging 2024. The company experienced a significant 58% decline in shares last year, grappling with subscriber losses and unfavorable demographic shifts. Despite these hurdles, Berkshire Hathaway's increased investment suggests confidence in SiriusXM's potential for growth and stability.
The expansion of Berkshire's stake follows Liberty Media's early September completion of its deal to combine its tracking stocks with the remainder of the radio company. Liberty Media, led by billionaire John Malone, has been a significant player in SiriusXM's corporate structure. Berkshire first invested in Liberty Media's trackers in 2016 and began accumulating SiriusXM's tracking stocks at the start of 2024, likely as part of a merger arbitrage strategy.
Despite the strategic acquisition, Warren Buffett has not publicly commented on the SiriusXM investment. It remains unclear whether the decision was made by Buffett himself or his investing lieutenants at Berkshire. The company, headquartered in Omaha, Nebraska, also purchased approximately five million shares in December, signaling a steady build-up of its position in SiriusXM.
Analyst sentiment towards SiriusXM remains cautious; out of 16 analysts surveyed by FactSet, only three have issued a buy rating for the stock. The satellite radio industry continues to face challenges, making Berkshire Hathaway's investment noteworthy for its potential implications on SiriusXM's future direction.
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