Liberty Has Moves Like Jagger

120px-Liberty_Media.svgNobody knows how to make corporate moves like John Malone. The chairman of the Liberty empire is at it again, with a series of new transactions at two of his Liberty enterprises. Liberty Media (LMCA) announced that it was splitting into three tracking stocks, while separately Liberty Interactive (QVCA)(LVNTA) announced that it was spinning off two businesses. If all that weren’t complex enough, the Liberty Media transaction also has a rights offering attached to it.

Liberty Media
In its press release, Liberty Media detailed the various aspects of the moves:

Liberty Media Corporation today announced that its board of directors has authorized management to pursue a reclassification of its common stock into three new tracking stock groups, one to be designated as the Liberty Braves Group, one to be designated as the Liberty Media Group and one to be designated as the Liberty Sirius Group, and to cause to be distributed subscription rights related to the Liberty Braves Group tracking stock following the creation of the new tracking stocks.

In connection with the creation of the new tracking stocks, record holders of Liberty’s Series A, Series B and Series C common stock would receive shares of the corresponding series of Liberty Braves tracking stock, Liberty Media tracking stock and Liberty Sirius tracking stock for each share of Liberty’s common stock held by them. In addition, following the creation of the new tracking stocks, Liberty would distribute to holders of its Liberty Braves tracking stock subscription rights to acquire shares of Series C Liberty Braves tracking stock. The record dates, distribution dates, and distribution ratios for the creation of the new tracking stocks and the distribution of subscription rights will be announced at a later date.

Liberty expects that the Series A, Series B and Series C Liberty Braves Group common stock will trade under the symbols BATRA/B/K respectively, that the Series A, Series B and Series C Liberty Media Group common stock will trade under the symbols LMCA/B/K, respectively, and that the Series A, Series B and Series C Liberty Sirius Group common stock will trade under the symbols LSXMA/B/K, respectively, in each case, on the Nasdaq Stock Market.

It was only a few weeks ago that Liberty CEO Greg Maffei was telling the market how cheap Liberty stock was. The creation of the three tracking stocks should help refocus the market on the value of Liberty’s holdings, in particular that of the Braves, which did not have a directly investable stock. Liberty’s investor presentation provides a great visual overview of the transaction, and which assets are attributed to which tracking stock.

Liberty Interactive
In its own press release, Liberty Interactive announced that it was spinning off two companies, specifically to holders of its Liberty Ventures tracking stock. Those two new companies are called CommerceHub and Liberty Expedia Holdings. From the PR:

CommerceHub, Inc. would be comprised of the CommerceHub business. Frank Poore, the founder of CommerceHub, will continue in his role as CEO. In the spin-off of CommerceHub, Inc., record holders of Series A and Series B Liberty Ventures common stock would receive shares of the corresponding series of CommerceHub, Inc. common stock for each share of Liberty Ventures common stock held.

Expedia Holdings would be comprised of, among other things, Liberty Interactive’s entire ownership interest in Expedia, Inc., as well as Liberty Interactive’s subsidiary Bodybuilding.com, LLC. In the spin-off of Expedia Holdings, record holders of Series A and Series B Liberty Ventures common stock would receive shares of the corresponding series of Expedia Holdings common stock for each share of the Liberty Ventures Group common stock held.

Liberty Interactive expects that the Expedia Holdings Series A and Series B common stock will trade under the symbols LEXEA/B, respectively, and that the CommerceHub, Inc. Series A and Series B common stock will trade under the symbols CHUBA/B, respectively, in each case, on the Nasdaq Stock Market.

The applicable record dates, distribution dates and distribution ratios for the Spin-Offs will be announced at a later date

You can find further details in this extensive 151-slide investor presentation. Splitting up these smaller companies should help highlight the value of each, and provide investors the ability to buy exactly the company that they want.

More complexity from John Malone? Nobody could’ve imagined.

The Upcoming Spinoffs page has links for the press releases and investor presentations.

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