It was recently announced that AT&T (NYSE:T) plans to buy DirecTV (NASDAQ:DTV) for $48.5 million plus the assumption of their debt. As DirecTV's largest shareholder, Berkshire Hathaway (NYSE:BRK-A) owns about 34.5 million shares, for which they'll be compensated a total of $95 per share.
They'll receive $28.50 per share in cash, for a total of just under $1 billion, plus the balance $66.50 in AT&T stock, which as of this writing translates to approximately 63.7 million shares worth $2.3 billion. Not a bad return when you consider most of their original investment was acquired for less than $43 per share in 2011.
Whether or not Berkshire will decide to keep its AT&T stake remains to be seen, but whether they sell those shares or not, the one certainty is they will have a new chunk of cash to put to work. Here are a few great values in the market Berkshire could use to fill the void left by DirecTV.
Is this the next Warren Buffett home run?
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!
Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Apple, DirecTV, and Ford. The Motley Fool owns shares of Apple and Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.