SOURCE: https://dailytradealert.com/2024/05/09/2-stocks-warren-buffett-just-confessed-to-selling/
[EXCERPT]
Buffett also silenced ongoing rumors about the losses Berkshire absorbed from its stake in Paramount Global by absolving top investment aides, Todd Combs and Ted Weschler and noting that “I was 100% responsible for the Paramount decision.”
The thumping Buffett took on his investment in Paramount can be traced to a couple of challenges. To start with, it’s been tough sledding for certain types of advertisers over the past year and change. Specifically, legacy TV networks have seen ad dollars shift to streaming platforms. Between ongoing cord-cutting and select money-based indicators forecasting a recession, advertising revenue for its legacy networks has declined.
The other issue for Paramount Global has been its need to build out its streaming assets and content library to counter cord-cutting. Although revenue for its direct-to-consumer (DTC) segment surged 37% last year to $6.74 billion, the DTC segment is still losing a boatload of money. While increasing monthly subscription prices is part of the recipe to shrink these losses, Paramount’s streaming segment is an undeniable drag on the company’s bottom line.
Given these challenges, Paramount Global’s future might entail it being acquired. Private equity company Apollo Global and Sony Pictures have sent a letter to Paramount’s board where they’ve expressed interest in paying $26 billion, including debt, to acquire the company. Paramount has also had discussions about a potential merger with Skydance Media.
Buffet: “I never invest in anything I don’t understand”
I guess Paramount+ was an exception.
Last year he was saying something to the effect of ‘streaming is a tough business’ and it would get worse.
Well hollyweird is dead to me and I’m indifferent to it’s success or failure but it’s interesting I’m not alone in my stand.
Usually the parasite makes money off of failing businesses.
Buffett will be alright even after “losing quite a bit of money” on Paramount.
It shows even the best end up making poor investments once in awhile.
I guess he’s not really that smart after all