NEW YORK (TheStreet) -- Warren Buffett's investment firm Berkshire Hathaway (BRK.A) has disclosed a new $366 million position in pay-TV company Charter Communications (CHTR) which it accumulated over its second quarter, according to a regulatory filing Thursday evening.
Charter, in which Liberty Media (LMCA) has a majority stake, is due to receive around 1.4 million new subscribers from Time Warner Cable (TWC) if the latter merges with Comcast (CMCSA). Those subscriptions will bump Charter's total customer base up to 5.7 million from 4.4 million, making the cable company the second-largest in the U.S.
However, Berkshire’s bet on Charter comes at the expense of DirecTV (DTV) and Starz (STRZA). Buffett, alongside portfolio managers Todd Combs and Ted Weschler, reduced holdings of DirecTV by about 32%, though its stake remains valued at a substantial $2 billion. DirecTV has agreed to be acquired by AT&T (T) though the deal has yet to pass regulatory approval.
Meanwhile, Berkshire sold its entire portfolio of Starz stock, around 1.9 million shares. The pay-TV company was formerly under the Liberty Media umbrella until it was spun off in early 2013.
Year to date, shares of Charter are up 14.8%, DirecTV has increased 22%, and Starz is down 1.3%.CHTR data by YCharts
--Written by Keris Alison Lahiff in New York.