Key Points
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Berkshire Hathaway has increased its stake in SiriusXM to 37%.
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SiriusXM struggles with investor confidence and declining revenues.
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SiriusXM management is executing cost-cutting and new growth initiatives.
Berkshire Hathaway acquired an additional 5 million shares of SiriusXM for approximately $106.5 million, according to recent SEC filings. This recent investment brings Berkshire’s total ownership in SiriusXM to 37%. While this purchase represents only 0.03% of Berkshire’s $344 billion cash stockpile, it underscores the company’s belief in SiriusXM’s potential despite its current financial struggles.
SiriusXM has faced challenges, including a declining subscriber base and revenue, but management is working to implement cost reductions totaling $200 million by year-end. New revenue-generating strategies, such as a dealer-sold subscription package and an ad-supported free version, aim to revive growth and improve free cash flow significantly in the near future.
