Warren Buffett’s Berkshire Hathaway has acquired $2.6-billion worth of Class B shares in media and entertainment giant Paramount Global, according to a report on Deadline.
A filing with the Securities and Exchange Commission shows that Berkshire Hathaway acquired nearly 69 million Paramount shares in the first quarter. The media company continues to be majority controlled by Shari Redstone and the family’s National Amusements.
The acquisition comes before Paramount Global’s annual upfront pitch to television advertisement buyers in New York, with the company scheduled to present on Wednesday afternoon.
The acquisition is in line with other Berkshire Hathaway purchases in companies such as Citibank, with the investment giant acquiring $51 billion in stocks in the first quarter of the year.
Investors are now closely watching the media and entertainment sector, following the decline in Netflix’s stock after the sector recorded a weak performance in its quarterly subscription numbers.
Paramount Global has been raising cash through the sale of assets and divesting CBS Studio Center, Black Rock, and CNET. PARA is up 9.56% premarket, BRK.A down 0.16%, and NFLX up 1.88% premarket.