Warren Buffett Reveals $2.6B Investment In Paramount Global (2024)

FAQs

What did Warren Buffett pay for Paramount Global? ›

Buffett first revealed that he had bought in to Paramount in May, when he disclosed a stake of about 75 million shares, which was valued at $2.6 billion at the time. Since then, most media and entertainment stocks have fallen in value.

Paramount Global surged in New York trading Tuesday after Warren Buffett's Berkshire Hathaway Inc. reported purchasing an 11% stake in the media company, becoming the largest holder of nonvoting shares.

In mid-May, Buffett disclosed his investment company purchased 75 million shares of PARA. At the time, PARA was trading much higher and the stake was worth $2.6 billion. That revelation goosed the stock from under $27 per share to the low $30s.

Out of 11 analysts, 3 (27.27%) are recommending PARA as a Strong Buy, 1 (9.09%) are recommending PARA as a Buy, 2 (18.18%) are recommending PARA as a Hold, 1 (9.09%) are recommending PARA as a Sell, and 4 (36.36%) are recommending PARA as a Strong Sell.

Templeton Global Advisors Ltd.

Class A common stock is voting stock, and Class B is non-voting stock. There is no difference between the two classes except for voting rights. There are, however, far more shares of Class B outstanding, so most of the trading occurs in that class.

A lackluster quarterly report and dividend cut resulted in a significant drop in shares. The Paramount+ streaming video service showed a strong revenue increase but remained unprofitable. The company's CFO remains optimistic about a recovery in ad revenue in the second half of 2023.

The driving force behind the decision to buy Paramount Global was likely the fact that the company has exposure to both traditional distribution and streaming services. Streaming is clearly valuable, but recent upsets have proven that traditional television may not be dead yet.

Apple Stock Is No. 1 By Value

While Bank of America is the No. 1 Warren Buffett stock by number of shares, Apple is the No. 1 stock in Berkshire's portfolio by market value. That stake was worth a whopping $150.9 billion at the end of March 2023.

What company is Warren Buffett investing in? ›

Top stock holdings in Buffett's portfolio

Bank of America (BAC) – $29.5 billion. American Express (AXP) – $25.0 billion. Coca-Cola – $24.8 billion. Chevron (CVX) – $21.6 billion.

Berkshire slightly increased its 179.4 million share stake in Bank of America stock while eliminating long-time stakes in US Bancorp and the Bank of New York Mellon. Buffett has eliminated a number of bank investments in recent years, but he continues to back Bank of America.

Stock Price Forecast

The 24 analysts offering 12-month price forecasts for Paramount Global have a median target of 17.50, with a high estimate of 32.00 and a low estimate of 10.00. The median estimate represents a +8.56% increase from the last price of 16.12.

Warren Buffett's company Berkshire Hathaway (BRK. A 0.12%) (BRK. B 0.10%) owned 94 million shares of media conglomerate Paramount Global (PARA 2.35%) as of last report -- worth $1.4 billion as of this writing.

Paramount Resources Ltd's analyst rating consensus is a Moderate Buy. This is based on the ratings of 6 Wall Streets Analysts.

Paramount Global stock has received a consensus rating of buy. The average rating score is and is based on 22 buy ratings, 14 hold ratings, and 20 sell ratings.

For Paramount Global Stock (PARA) price forecast for 2030, a forecast is offered for each month of 2030 with average PARA price forecast of $66.16, a high forecast of $77.42, and a low forecast of $39.53.

The company has $2.11 billion in cash and $17.25 billion in debt, giving a net cash position of -$15.14 billion or -$23.01 per share.

The main competitors of Paramount Global include ViacomCBS (VIACA), Paramount Global (PARAA), Nexstar Media Group (NXST), FOX (FOX), Formula One Group (FWONA), FOX (FOXA), TEGNA (TGNA), Formula One Group (FWONK), Grupo Televisa, S.A.B. (TV), and Caesars Entertainment (CZR).

What company owns Paramount Global? ›

Paramount Global (doing business as Paramount) is an American multinational mass media and entertainment conglomerate controlled by National Amusem*nts (89.6%) and headquartered at One Astor Plaza in Midtown Manhattan, New York City.

Yes, PARA's past year earnings per share was -$0.77, and their annual dividend per share is $0.77.

The current dividend yield of Paramount Global is 6.08%.

Some companies may refer to their Class B shares as preferred stock. These stocks are described as a hybrid between bonds and common stock as it has features of both securities. These dividends which come with these shares are paid to shareholders before common shareholders when a company goes bankrupt.

Paramount Global 's flagship streaming service Paramount+ will combine with its Showtime app in the U.S. on June 27, the company said Monday. With the newly merged streamer will come an increase in pricing, as Paramount had announced earlier this year.

When Paramount+ debuts its rebrand as Paramount+ With Showtime on Tuesday, June 27, the premium ad-free plan will cost $11.99 per month, a $2 increase from the current price.

Paramount Global has an annual dividend of $0.20 per share, with a forward yield of 1.32%. The dividend is paid every three months and the next ex-dividend date is Jun 14, 2023.

Paramount Global missed analyst estimates for both first-quarter earnings and revenue. The company is cutting its quarterly dividend from 24 cents to 5 cents. The stock logged its worst day since Viacom and CBS merged in December 2019.

Paramount Global gross profit for the twelve months ending March 31, 2023 was $10.078B, a 2.39% decline year-over-year. Paramount Global annual gross profit for 2022 was $10.309B, a 4.92% decline from 2021.

Paramount has long been rumored as a potential acquisition target due to its small size relative to competitors. The media giant boasts a current market cap of just about $14 billion, which pales in comparison to Disney's (DIS) $173 billion and Netflix's (NFLX) $144 billion.

What is Warren Buffett buying 2023? ›

In the first quarter of 2023, Warren Buffett's Berkshire Hathaway bought three new stocks – Capital One Financial, Diageo ADR, and Vitesse Energy.

Berkshire Hathaway's Johnson & Johnson Stake

Warren Buffett acquired 327 Thousand Johnson & Johnson shares worth $51.9 Million. That's 0.02% of their equity portfolio (38th largest holding). The first Johnson & Johnson trade was made in Q1 2006.

Buffett hasn't avoided Tesla because he dislikes the company's CEO, Elon Musk. He recently called Musk "a brilliant, brilliant guy." So why doesn't Buffett own Tesla stock? Here's the biggest reason.

The current portfolio value is calculated to be $325.11 Bil. The turnover rate is 2%. In Warren Buffett's current portfolio as of 2023-03-31, the top 5 holdings are Apple Inc (AAPL), Bank of America Corp (BAC), American Express Co (AXP), Coca-Cola Co (KO), Chevron Corp (CVX), not including call and put options.

co*ke remains an attractive long-term investment idea based on resilient topline growth, high margins, and consistent excess investment returns for more than 20 years. That said, the stock is trading at a 10% premium to our $58 fair value estimate, and we'd wait for a better entry point.

Warren Buffett U.S. Bancorp.

The first U.S. Bancorp. trade was made in Q1 2001. Since then Warren Buffett bought shares 26 more times and sold shares on fifteen occasions. The investor completely sold their stake between Q4 2020 and Q1 2023.

According to our Paramount Global stock prediction for 2025, PARA stock will be priced at $ 15.79 in 2025. This forecast is based on the stock's average growth over the past 10 years.

Is Paramount Communications a good buy? ›

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Paramount Communications Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

"It's not good news when any company cuts its dividend dramatically," the Berkshire Hathaway chairman and CEO said. Billionaire investor Warren Buffet has criticized entertainment giant Paramount Global and its executives for a recent decision to cut a dividend paid to the company's shareholders.

In 1993, Sumner Redstone's entertainment conglomerate Viacom made a bid for a merger with Paramount Communications; this quickly escalated into a bidding war with Barry Diller's QVC.

Fields, and Bing Crosby and such directors as Ernst Lubitsch, Josef von Sternberg, and Rouben Mamoulian. Although it continued to produce films that were artistically and financially successful, it suffered losses from its chain of theatres during the transition to sound, and Paramount was declared bankrupt in 1933.

Historical price to book ratio values for Paramount Global (PARA) over the last 10 years. The current price to book ratio for Paramount Global as of June 06, 2023 is 0.46.

Alternatives and possible competitors to Paramount Resources may include Sabine Oil & Gas , ENERGY CORP OF AMERICA , and Klingler Automatic .

As of today (2023-06-08), Paramount Global's Intrinsic Value: Projected FCF is $45.73. The stock price of Paramount Global is $16.67. Therefore, Paramount Global's Price-to-Intrinsic-Value-Projected-FCF of today is 0.4.

The driving force behind the decision to buy Paramount Global was likely the fact that the company has exposure to both traditional distribution and streaming services.

Paramount Global long term debt for 2022 was $15.607B, a 11.81% decline from 2021. Paramount Global long term debt for 2021 was $17.698B, a 10.24% decline from 2020.

Who owns the rights to Paramount Global? ›

Paramount Global shares plunged more than 25% after a dismal first-quarter earnings report. Citing a weak advertising market in its TV business, the company also cut its dividend sharply. Paramount+ reached 60 million global subscribers and revenue grew 65% year over year.

Stock Price Forecast

The 24 analysts offering 12-month price forecasts for Paramount Global have a median target of 17.50, with a high estimate of 32.00 and a low estimate of 10.00. The median estimate represents a +10.76% increase from the last price of 15.80.

Class A common stock is voting stock, and Class B is non-voting stock. There is no difference between the two classes except for voting rights. There are, however, far more shares of Class B outstanding, so most of the trading occurs in that class.

Paramount+ is the only streamer out there that grants you access to nearly every CBS show That means if you're looking to watch full seasons of NCIS, The Neighborhood, or Frasier, then this is the perfect service for you. Price-wise the service is more affordable than a basic subscription to Hulu, Netflix, or Disney+.

This may occur if you're signed in to an ex-subscriber account. Please make sure that you're signed in to the correct account, and try again. If you're signed into the correct account and are still having issues, just visit help.paramountplus.com/s/help to reach us, and an agent will gladly assist you.

The company's brands include CBS, BET, Comedy Central, Paramount+, Pluto TV, MTV, Paramount Pictures, Showtime Netwo, Smithsonian Channel, and Nickelodeon. Paramount operates as a subsidiary of National Amusem*nts Inc. The company has operations in the Americas, Europe, the Middle East, Africa, and Asia-Pacifc.

Paramount Network is an American basic cable television channel owned by the MTV Entertainment Group unit of Paramount Media Networks.

What makes Paramount Global a value trap? To start off, the price-book ratio for Paramount Global as of this writing was 0.60. This is a little too cheap. The price-book ratio increased from 2009 to 2017, and then it declined to below 1.0 as of late 2021.

Did Paramount cut its dividend? ›

Key Takeaways. Quarterly results for Paramount Global (PARA) came in below expectations, and the entertainment company announced that it would cut its quarterly dividend. Although sales jumped at its direct-to-consumer unit, which includes the Paramount+ streaming service, expenses also moved higher.