Source: Finance Association
① Buffett's Berkshire Hathaway increased its holdings of Liberty SiriusXM's Class A shares and Class C shares this week, spending a total of more than 28 million US dollars; ② SiriusXM's revenue for fiscal year 2023 reached 8.95 billion US dollars, and profit before interest and tax and net profit were 2.79 billion US dollars and 1.26 billion US dollars, respectively.
On Friday (April 26) local time, documents on the US Securities and Exchange Commission (SEC) website showed that “stock god” Warren Buffett's$Berkshire Hathaway-A (BRK.A.US)$/$Berkshire Hathaway-B (BRK.B.US)$Liberty SiriusXM's shares were increased this week.
According to documents, Berkshire increased its holdings of Liberty SiriusXM's Class A shares and Class C shares for three days this Wednesday, Thursday, and Friday, respectively.$Liberty SiriusXM Series A (LSXMA.US)$The holdings were increased by 500,000 shares, and the price was between 24.42 and 25.21 US dollars;$Liberty SiriusXM Series C (LSXMK.US)$The holdings were increased by 64,7016 shares, and the price was between 24.33 and 25.16 US dollars.
According to calculations, Berkshire spent a total of more than 28 million US dollars this time. After the deal, the financial giant held a total of 35,182,219 LSXMA shares and 69,691,260 LSXMK shares.
According to information, LSXMA and LSXMK are tracking stocks issued by US media giant Liberty Media Corp (Liberty Media Corp) for 84% of its satellite broadcasting giant SiriusXM shares. Class A shares have voting rights, while Class C shares do not.
Stock tracking is a mechanism in the US stock market. Large diversified enterprise groups can use it to allow public investors to invest in a business with potential for growth while maintaining control over the company's structure and assets.
In 2008, Sirius Satellite Broadcasting Company and XM Satellite Broadcasting Holdings merged to form SiriusXM to provide music, sports, entertainment, comedy, conversation, news, traffic, weather and other channels and infotainment services in North America through a proprietary satellite broadcasting system. After that, SiriusXM also acquired Pandora, the former music streaming hegemon.
According to the official website, SiriusXM's revenue for fiscal year 2023 reached 8.95 billion US dollars, profit before interest and tax and net profit were 2.79 billion US dollars and 1.26 billion US dollars respectively. The number of listeners reached 150 million, and the number of subscribers reached about 34 million.
However, the parent company of SiriusXM, Liberty Media Group is not small. It was founded in 1991 by “The Godfather of American Cable Television” John Malone. It not only has SiriusXM, but also controls two top events, Formula 1 (F1) and MotoGP, and is at the top of the “Forbes” list of the world's most valuable sports empires.
The Financial Services Association previously mentioned that there are opinions that the future prospects of the SiriusXM business are worth betting on. The company mainly works on in-vehicle broadcasts and has an absolute dominant position in the US automobile market. Most new cars are equipped with SiriusXM systems. And with the gradual increase in demand for autonomous driving and in-vehicle entertainment, future revenue is clearly impressive.
Another analysis indicates that Buffett made this decision because there is some room for arbitrage. In December of last year, SiriusXM announced that it would track stocks and SiriusXM's own shares$Sirius XM (SIRI.US)$A merger will be carried out, and once the merger is completed, Berkshire will be the main beneficiary.
According to media analysis, the deal was not like Buffett's handwriting; it was more like a transaction led by his deputy Ted Weschler. Next Saturday, Berkshire will host a shareholders' meeting, where Buffett is likely to answer questions raised by analysts about SiriusXM.
editor/tolk