John Malone to restructure Liberty Media, Liberty Interactive

Thu Nov 12, 2015 9:54am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Reuters) - Media mogul John Malone, known for striking complex deals and running companies with intricate structures, is restructuring two companies he controls using tracking stocks and spinoffs.

Liberty Interactive Corp (QVCA.O: Quote), which mainly houses Malone's e-commerce interests, said it would spin-off some of its businesses along with its 18 percent stake in online travel company Expedia Inc (EXPE.O: Quote) into two newly-formed units - CommerceHub Inc and Liberty Expedia Holdings Inc.

Liberty Interactive itself is structured into two tracking stocks - QVC Group, its home-shopping business, and Liberty Ventures Group, its cable assets.

The spun off stocks will be distributed to Liberty Ventures Group shareholders.

Separately, Liberty Media Corp LMCA.O - which was spun off from Liberty Interactive in 2011 - said it would reclassify its shares into three new tracking stock groups.

A tracking stock is a type of common stock that "tracks" or depends on the financial performance of a specific business unit or operating division of a company rather than the operations of a company as a whole.

One tracking stock will be designated as the Liberty Braves Group and will track its Atlanta Braves baseball holdings.

The second, Liberty Media Group, will track its ownership in stakes in Time Warner, Viacom and Live Nation. The Liberty Sirius Group will track its unit Sirius XM Holdings Inc (SIRI.O: Quote).

"The move is positive and hints at more to come especially with the Sirius tracker," Robert Routh, an analyst at FBN Securities said.   Continued...

Liberty Media Corp. chairman John Malone arrives at the annual Allen and Co. conference at the Sun Valley, Idaho Resort July 12, 2013.  REUTERS/Rick Wilking