A prominent shareholder in Paramount Global has declared his shareholding

Warren Buffett’s Berkshire Hathaway bought a large interest in the media business Paramount Global (PARA) in the first quarter. The investor disclosed the value of his stock last week. On Tuesday, May 17, the announcement was the catalyst for a 15% increase in Paramount Global stock. PARA stock closed at $31.55 on May 18th.

In the first quarter, Berkshire Hathaway purchased over 69 million shares of Paramount Global. These shares were valued at more than $2.6 billion at the end of March. The value of Paramount Global shares is anticipated to be nearly 15 times higher than the estimated profit in 2023 at present prices. However, when compared to competition estimations, this is a reliable signal.

For this reason, Berkshire Hathaway is most likely interested in Paramount Global Securities. Note that ViacomCBS has relaunched as Paramount Global to concentrate on the development of Paramount+ streaming services. In addition, CBS, Showtime, Nickelodeon, MTV, CMT, Comedy Central, and BET are among the company’s prominent television networks. Paramount Global is still restructuring and selling off non-core businesses to get the money it needs to pay for its streaming development activities.

Its streaming service, Paramount+, is fast attracting users, with 6.8 million signing up in the first quarter alone. By the end of March, the company’s global user base had surpassed 62 million individuals. By the end of 2024, Paramount Global anticipates a total of 100 million customers, including Showtime members. The fact that streaming services like Netflix, Amazon.com, and Apple have a lot of competition is a worry for Paramount Global.