Whether AT&T’s newly announced $48.5 billion acquisition of DirecTV is ultimately good for both parties is uncertain, but one thing that is certain, is that it means a huge windfall for Berkshire Hathaway.
Berkshire reported owning 34.5 million shares of DirecTV as of March 31, 2014, and those shares were purchased at roughly half the tender price of $95 per share being offered by AT&T.
A Windfall for Berkshire
At the $95 share price, Berkshire’s holdings will be worth at least $3.27 billion, provided that it did not accumulate any additional shares after March 31.
A Winner for Todd Combs and Ted Weschler
Berkshire’s DirecTV stake was purchased by Todd Combs and Ted Weschler, as a part of portfolios they manage on behalf of the company.
Combs and Weschler each manage $7 billion portfolios, and have seen the amount of money under their supervision increased significantly in the past two years as Warren Buffett has grown more confident in their approaches.
Both stock pickers beat the S&P 500 in 2013. 2014 looks to be a very good year as well.
© 2014 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.