Berkshire Hathaway (BRK.A, Financial) (BRK.B, Financial) just made another big move on Sirius XM (SIRI, Financial), scooping up 2.3 million more shares for around $54 million. This latest buy pushes its stake to 35.4%, solidifying its hold on the satellite radio giant. The big question—was this Buffett himself, or his trusted lieutenants, Ted Weschler and Todd Combs? Either way, it's a bold bet on a stock that's been in freefall, dropping over 50% in the past year as subscriber losses and shifting demographics weighed it down.
Despite the rough ride, Berkshire has been piling in, ramping up its position throughout 2024 and now making its first 2025 purchases at an average price of $23.50 per share. With its total investment now worth about $2.9 billion, it's clear someone at Berkshire sees value where Wall Street doesn't—only three out of 16 analysts covering Sirius XM rate it a buy, according to FactSet. The stock is hovering near a 52-week low, making it a classic Berkshire contrarian play.
This isn't Berkshire's first rodeo with Sirius XM. It initially entered the space in 2016 through Liberty Media's trackers before shifting focus to Sirius XM itself in early 2024, likely eyeing a merger arbitrage opportunity. Liberty Media's recent restructuring bundled its tracking stocks with the rest of Sirius XM while spinning off the Atlanta Braves into a separate public company—another entity Berkshire owns a piece of. Whether this bet is a short-term arbitrage or a long-term value play, one thing's for sure—Berkshire isn't afraid to go against the grain.
