Paramount Global shares post record daily decline
4:11 pm Thursday, May 04th, 2023
NEW YORK (Reuters) – Shares of Paramount Global Inc, whose biggest stock holder is Warren Buffett’s Berkshire Hathaway, plunged lower on Thursday after the streaming giant cut its dividend and reported revenue results that disappointed.
Paramount’s stock finished the session down 28.3%, suffering its biggest daily percentage drop on record. The stock’s largest daily decline on record had been 27.3% on March 26, 2021.
Berkshire Hathaway, which is expected to hold its annual meeting on Saturday, had a 15% stake in Paramount as of Dec. 31.
Paramount Global said it was cutting its dividend to 5 cents per share. Analysts at TD Cowen wrote in a research note that there was “no big surprises” in the results but noted that the 79% reduction in the dividend “hurts.”
Berkshire, with a stake of 93.64 million shares, lost about half a billion dollars on Thursday.
(Reporting by Caroline Valetkevitch; Editing by Lance Tupper and Lisa Shumaker)
