Buffett is betting heavily on free media and is optimistic about the future of satellite broadcasting services.

Recently, through a series of transactions, Berkshire significantly increased its shareholding in Liberty SiriusXM (LSXMA) at a cost of US$368 million, increasing its shareholding ratio to about 30%.

According to US SEC documents on March 28, this week, Berkshire used 29 million US dollars to buy 8.9 million Liberty SiriusXM Class C shares and 3.8 million Class A shares with 110 million US dollars. Class A shares have voting rights, while Class C shares do not.

Liberty Media is essentially a tracking stock of SiriusXM, a satellite broadcasting company controlled by American media mogul John Malone, and owns about 80% of Sirius XM SiriusXM (SIRI).

However, Berkshire's aggressive increase in positions contrasted with the bearish sentiment in the market. Sirius XM was violently shorted this year, with a drop of 29%.

Sirius XM is an audio entertainment company that offers music, sports, comedy, talk shows, news, and other channels through paid subscription services. The company has received quite a bit of attention in recent years as the market is skeptical about its future, which in turn has boosted a large number of bears' interest in the stock.

Sirius XM currently has a short share of 27% of its tradable shares, which is quite a large proportion, especially considering that Siri has a market capitalization of up to 18.4 billion US dollars.

Recently, short interest in Sirius XM increased due to arbitrage traders putting pressure on the stock in anticipation of the company's merger with Liberty SiriusXM Group. This arbitrage has led to an increase in the number of long and short deals against LSXMA and increased the volatility of Siri's stock price.

The analysis points out that the reason why Berkshire bucked the trend and placed a big bet on SiriusXM released three signals: optimistic about the long-term growth of satellite broadcasting; agreed with the merger value of free media and SiriusXM; and intended to exert influence at a critical moment to guide the smooth completion of the merger.

Berkshire apparently believes that its long-term value has been undervalued. SiriusXM has an absolute dominant position in the US car market, and most new cars are equipped with SiriusXM systems. As demand for autonomous driving and in-car entertainment grows, this advantage will become even more prominent.

Another influencing factor is that Liberty SiriusXM has announced a merger with SiriusXM. This initiative aims to simplify the corporate structures of both parties, eliminate valuation discounts, and bring about collaborative growth through scale effects.

Once the merger is completed, Berkshire will become the main beneficiary of the merged entity, which is also a major factor in the company's current significant increase in holdings.

Furthermore, through large purchases, Berkshire can further consolidate its investment and help facilitate the smooth completion of the merger.

Additionally, the Berkshire 13-F file shows a sell-off of $2.4 billion of HP Inc shares and $1.93 billion of Apple shares.

Some of Berkshire's recent purchases have also attracted market attention, particularly its large investment in oil. The company bought $2.3 billion worth of Chevron shares and also bought Occidental Petroleum worth $1.17 billion.