Is Paramount Warren Buffett’s Greatest Investment Mistake?

[BigFatWhale]

Trading at a price to book of 0.4 with solid intellectual property assets backing it, Paramount seems like a "Must Look At" stock for value investors.

Buffett is down 60% from his entry near $30. Berkshire has a 15.4% stake.

Their streaming business is still bleeding cash. A one-off programming charge of 2.37 billion dollars was the cause for their losses in HY23. If not they are profitable in the tune of close to 950 million dollars for HY23.

We are cautiously optimistic in this turnaround play.

Click Here for the Full Article:

https://thebigfatwhale.com/paramount-war...t-mistake/

[CY09]

Appreciate that a summary of the article otherwise full length is posted here. I have noticed that your posts are short and are used as a means of directing traffic to your website. This is not allowed in valuebuddies.

Please edit the post, otherwise it will be closed

Thanks

Moderator

[BigFatWhale]

We were baffled by the languishing stock price of Paramount, which is in the stable of Berkshire Hathaway despite 3 offers on the table.

We analyzed the 3 offers and tried to extract what is happening.

Financial strength-wise, Paramount should be able to withstand another 2-3 years with 2.5 billion dollars cash on their books. This is illustrated by the recent announcement of dividends.

The offer they are currently having exclusive discussions on seems to favour the controlling shareholders as it is not an outright buyout offer. In this deal, the controlling shareholder, the Redstone family, can monetize their holdings. 

The minority shareholders would not be better off as it will be a work in progress with this deal.

Click Here for the Full Article:

https://thebigfatwhale.com/buffetts-para...-3-offers/