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3w ago

Berkshire Hathaway Cuts VeriSign Stake Below 10%, Nets $1.2 Billion

It lowers Berkshire’s ownership below the 10 percent disclosure threshold to sidestep extra SEC filings during Buffett’s planned CEO succession.

FILE - Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, 2018.
Trading information and logo for Berkshire Hathaway is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 10, 2023. REUTERS/Brendan McDermid/File Photo
Berkshire Hathaway logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 10, 2023. REUTERS/Brendan McDermid/File Photo
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Overview

  • Berkshire sold 4.3 million VeriSign shares at $285 each, trimming its stake from 14.2 percent to under 10 percent.
  • The transaction generated roughly $1.2 billion and includes an option to divest an additional 515,032 shares.
  • VeriSign will receive no proceeds from the sale and its stock fell about 7 percent in after-hours trading.
  • Dropping below the 10 percent threshold exempts Berkshire from more rigorous SEC disclosure and reporting obligations.
  • The divestment coincides with Warren Buffett’s planned transition to chairman and may free up capital for new investments.