News of legendary investor Warren Buffett buying a $2.6 billion stake in Paramount Global sent the company’s stock soaring 14% in early Tuesday trading.

The move comes a day before the company will be making its annual upfront advertising pitch to TV advertisers and media agencies.

Buffett's traditional investing moves are typically based on long-term value in companies, starting at a low buy-in stock price.

Paramount Global stock has seen its stock drop down 26% year-over-year. It currently trades at a very modest 4.6 price-to-earnings (PE) ratio, while its market capitalization is at $20.9 billion currently.-

The company's first-quarter revenue was down 1% to $7.3 billion -- under-delivering on expectations. On a more positive note, Paramount Global's total direct-to-consumer (D2C) streaming revenue grew 82% to $1.1 billion in the first quarter

“While we believe Paramount has enough unique content (scripted + sports) to keep Paramount+ growing in the U.S. --and benefit from the secular shift in advertising moving to AVOD with Pluto -- we remain cautious on the impact of this growth on the linear business,” said MoffettNathanson Research earlier this month.

In the first quarter, Paramount added 6.3 million total streaming subscribers to now total 62 million -- including Pluto TV, Paramount+, and Showtime OTT.

Looking specifically at Paramount+, its premium streaming platform, there were 6.8 million subscriber additions, reaching a total of 40 million globally.