Berkshire Hathaway (NYSE: BRKa) acquires $60.7 million in Sirius XM stock
OMAHA, NE— Berkshire Hathaway Inc. (NYSE: BRKa) (NYSE: BRK.A), led by renowned investor Warren E. Buffett, has expanded its stake in Sirius XM Holdings Inc. (NASDAQ: SIRI) with a series of stock purchases totaling approximately $60.7 million. The acquisitions occurred over three consecutive days, with shares bought at prices ranging from $26.5913 to $27.65 per share.
On October 29, Berkshire acquired 623,527 shares at a weighted average price of $27.65. This was followed by the purchase of 925,205 shares on October 30 at an average price of $27.444. The buying spree concluded on October 31 with 679,207 shares acquired at an average price of $26.5913.
These transactions have increased Berkshire’s ownership to 112,504,729 shares, held indirectly through its subsidiaries. The shares are owned by several subsidiaries, including Government Employees Insurance Company and National Indemnity Company, among others. While Buffett, as the controlling shareholder of Berkshire, may be deemed to have an interest in these shares, he disclaims beneficial ownership except to the extent of his pecuniary interest.
In other recent news, Sirius XM Holdings Inc. reported its third-quarter financial results, highlighting both challenges and strategic initiatives. The company, now fully independent following its transaction with Liberty Media, reported a quarter focused on subscriber growth and advertising revenue optimization. Despite a decrease in advertising revenue leading to a $75 million reduction in revenue guidance, and a noncash impairment charge of approximately $3.36 billion due to the Liberty Media transaction, Sirius XM remains committed to maintaining financial strength.
Q3 revenue stood at $2.17 billion, a 4% decrease year-over-year, with subscriber revenue down 5%. The company adjusted its total revenue guidance down by $75 million to approximately $8.675 billion while maintaining adjusted EBITDA guidance of about $2.7 billion and free cash flow of roughly $1 billion. Sirius XM reported 14,000 self-pay net additions and expects slightly better full-year subscriber performance.
Among recent developments, Sirius XM aims to reach 50 million subscribers and $1.8 billion in free cash flow, leveraging new offerings. The company is focused on enhancing subscriber value through new pricing structures and partnerships and is working on optimizing advertising capabilities, with initiatives like Free Access for non-subscribers and replatforming efforts expected to contribute positively over time. Sirius XM’s leadership expressed confidence in their strategies for subscriber acquisition, advertising revenue, and overall operational efficiency.