Buffett and Soros cheer US cable

Billionaire investors Warren Buffett and George Soros boosted the confidence, and market worth, of the US cable sector this week. Buffett's Berkshire Hathaway doubled its stake in Comcast, acquiring 5m shares for $150m. Meanwhile Soros injected $50m into media conglomerate Time Warner, which also operates cable services in the US.

The move follows improved profits performance of both cable operations as they migrate subscribers to higher-margin digital television platforms that can offer video-on-demand, and personal video recorders.

As The New York Times reported, the cable sector has recently seen its market value hit amid investor fears over increasing competition from satellite broadcasters.

Analysts suggested Buffett and Soros had spotted an investment opportunity.

"The whole cable sector has been pretty well beat up. Now people are starting to see the long-term value of the stock," Ron Rizzuto, professor of finance at the University of Denver, told Business Report.

Lovelacemedia  |  17.02.2005

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