Liberty Media To Spin Off Cable Broadband Into Separate Company
May 9, 2014 at 4:48 AM (PT)
SIRIUSXM RADIO, LIVE NATION and CHARTER COMMUNICATIONS parent LIBERTY MEDIA CORP. announced its corporate first quarter 2014 results on THURSDAY (5/7), with a revenue increase of $222 million year-to-year to $1.011 billion, attributed to the previously-announced 11% increase at SIRIUSXM, and the unveiling of a plan to spin off the company's LIBERTY BROADBAND GROUP cable broadband holdings (CHARTER and spinoffs from TIME WARNER acquired in the COMCAST deal, plus mobile phone location detection company TRUE POSITION) into a new publicly-traded company, LIBERTY BROADBAND. LIBERTY shareholders would ger a quarter-share of the new company for each share of their common stock.
The company board also approved the issuance of shares of LIBERTY Series C common stock to holders of its Series A and Series B common stock as a dividend, payable JULY 10th to shareholders of record as of JULY 7th.
Pres./CEO GREG MAFFEI said, "Since we last reported, LIBERTY MEDIA has been busy. In APRIL, we completed the sale of $340 million of our SIRIUSXM shares back to SIRIUSXM and also sold 90% of our stake in BARNES & NOBLE. Today, we announced our plan to distribute non-voting Series C shares of LIBERTY MEDIA, our plan to spin-off LIBERTY BROADBAND GROUP into a separate publicly-traded company and our purchase of additional CHARTER shares, which increased our beneficial ownership to 26.4%. We believe a separate LIBERTY BROADBAND will offer investors greater choice and transparency, and is well timed with CHARTER's agreements with COMCAST which will result in CHARTER owning or serving over eight million video customers. We anticipate completing the distribution of the Series C shares in the third quarter and the spin-off by the end of the year."
"Our affiliated companies posted strong results across the board: SIRIUSXM grew revenue 11%, CHARTER accelerated its growth in revenue," added MAFFEI. "Adjusted EBITDA and customer units and LIVE NATION grew revenue and AOI across the board."