Berkshire Hathaway to reduce VeriSign stake through $1.23 billion stock offering

Published 30/07/2025, 15:50
Berkshire Hathaway to reduce VeriSign stake through $1.23 billion stock offering

VeriSign, Inc. (NASDAQ:VRSN), a $25.47 billion market cap company with impressive gross profit margins of 88%, announced Monday that Berkshire Hathaway (NYSE:BRKb) Consolidated Pension Plan Master Trust and Burlington (NYSE:BURL) Northern Santa Fe, LLC Master Retirement Trust have entered into an agreement to sell 4,300,000 shares of VeriSign common stock at $285.00 per share. According to InvestingPro analysis, the company is currently trading above its Fair Value, which may have influenced the timing of this sale. The offering, managed by J.P. Morgan Securities LLC, is expected to close Wednesday.

The transaction is structured so that all proceeds from the sale will go to the selling stockholders. VeriSign will not sell any shares and will not receive any proceeds from the offering. According to the company’s statement, the sale is intended to reduce Berkshire Hathaway Inc .’s beneficial ownership of VeriSign below the 10% threshold that would trigger additional regulatory obligations.

The offering has been registered under the Securities Act of 1933 on Form S-3 (Registration No. 333-288995), with a prospectus supplement dated Monday and filed with the Securities and Exchange Commission on Tuesday. The selling stockholders have also provided the underwriter with a 30-day option to purchase up to an additional 515,032 shares.

Following the completion of the transaction, Berkshire Hathaway Inc. (NYSE:BRKa) and its affiliates have agreed to a 365-day lock-up on their remaining shares in VeriSign. Affiliates of Berkshire Hathaway have held stakes in VeriSign since 2012. With analysts forecasting continued profitability and the company achieving a strong return on assets of 55%, investors seeking detailed valuation metrics and comprehensive analysis can access the full VeriSign research report on InvestingPro, which includes over 30 key financial metrics and expert insights.

This information is based on a press release statement included in VeriSign’s filing with the Securities and Exchange Commission.

In other recent news, VeriSign Inc. reported its second-quarter 2025 financial results, highlighting a slight beat on earnings per share (EPS) but a marginal miss on revenue forecasts. The company achieved an EPS of $2.21, just surpassing the forecasted $2.20, while revenue was recorded at $410 million, slightly below the expected $410.97 million. In another significant development, Berkshire Hathaway announced the sale of 4.3 million shares of VeriSign at $285 each in an underwritten secondary offering. This move aims to reduce Berkshire Hathaway’s ownership stake to avoid additional regulatory obligations. The offering is being conducted by affiliates of Berkshire Hathaway, which have been stockholders since 2012. Notably, VeriSign will not sell any shares or receive any proceeds from this transaction. J.P. Morgan Securities LLC is serving as the sole underwriter for the offering. These developments come amid a broader market reaction to Berkshire’s decision to reduce its stake in the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.