Key Points
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Berkshire Hathaway purchased roughly $27 million worth of Sirius XM shares between Oct. 30 and Nov. 3.
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The conglomerate now owns a 37.4% stake in the company.
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A deal with Alphabet could generate as much as $2 billion in incremental annual revenue by 2029.
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Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) CEO Greg Abel’s tenure is being defined by aggressive moves, with one of the most recent being the addition of more shares of Sirius XM Holdings (NASDAQ: SIRI) to the company’s portfolio.
As revealed in a Form 4 filing, from Oct. 30 to Nov. 3, Berkshire purchased approximately $27 million worth of Sirius XM shares. By Berkshire’s standards, that may sound small, with Sirius XM’s weight in its portfolio at only 1.1%.
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That said, the bigger vote of confidence from Abel’s company is that it now owns 37.4% of the satellite radio provider. And as we head into 2027, investors may also want to consider Berkshire’s moves and add the stock, or more of it, to their own portfolios.
An improving situation that could get even better
Over the last five years, Sirius XM has faced increased competition, a declining customer base, rising content costs, and a difficult market for acquiring new customers.
In 2026, however, there’s been a much brighter story. For instance, in the company’s recent 2026 third-quarter earnings, it reported a net addition of 5,000 subscribers, compared with a loss of 40,000 in the prior-year period. And while total revenue was roughly flat for the quarter, Sirius XM reported a 7% increase in net income, totaling $317 million. Quarterly free cash flow also jumped 14% to $293 million. Investors have shown their enthusiasm for the stock, with shares up 65% thus far in 2026.
Heading into 2027 and beyond, while the stock price might not climb more than 60% each year, there’s a reason Sirius XM could continue to be a long-term winner.
An advertising deal with a tech giant
In April, Sirius XM struck a deal with Alphabet to become the exclusive advertising representative of YouTube’s audio ad inventory in the United States. While YouTube was essentially just a platform to upload videos in its early days, it’s become a more comprehensive destination for entertainment, ranging from live sports to podcasts to music. And it’s a huge market for advertisers to reach. “According to a study from SiriusXM Media and Edison Research, there are more than 212 million monthly listeners in the U.S. engaging in audio-first content or environments on YouTube,” Sirius said in a press release.
For Sirius XM, managing YouTube’s audio ad inventory will benefit the company and, therefore, could benefit the stock over the long term in a few ways. The first is that it makes Sirius XM less reliant on new subscriber additions for revenue growth. Secondly, handling the audio inventory should be a higher-margin business than paying content creators to launch new channels for Sirius XM. Finally, it can also create cross-selling opportunities for Sirius XM’s own advertising business, as advertisers can buy slot time on the same platform not only for YouTube but also for Sirius XM’s media.
This deal won’t be massively transformative right away, but by 2029, Deutsche Bank analysts estimate the partnership could generate $2 billion in incremental annual revenue for Sirius. For a company that generated $8.5 billion in 2025, that’s meaningful.
If Sirius XM can set up other deals like this, it could ultimately become a profitable toll collector in the audio advertising space rather than competing in the crowded audio entertainment sector.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Berkshire Hathaway. The Motley Fool has a disclosure policy.
