Liberty Media To Spin Off Starz-TV To Raise Capital To Buy Larger Stakes In SiriusXM And Live Nation
August 9, 2012 at 3:51 AM (PT)
SIRIUSXM CEO MEL KARMAZIN may have softened his stance on answering to a new boss (NET NEWS 8/8) just in time, as major shareholder LIBERTY MEDIA is reportedly set to sell off its STARZ premium-cable TV channel in order to bring in cash to buy controlling interest in SIRIUSXM.
THE WALL STREET JOURNAL reports, "LIBERTY CEO GREG MAFFEI says the move will 'permit us to better pursue our strategic objectives, including creating two currencies that could be used for acquisitions; and create significant liquidity at LIBERTY MEDIA, which preserves all our options with respect to SIRIUSXM and LIVE NATION'."
LIBERTY currently owns over 40% of the satcaster, and 26% of LIVE NATION.
KARMAZIN insisted during the company's financial conference call that his employment status isn't an issue in discussions with the satcaster's biggest shareholder, LIBERTY MEDIA CORP. KARMAZIN's deal as CEO expires at the end of the year and he said he and the board would "deal with it" before the third-quarter earnings report in three months' time.