Liberty Media CorpNASDAQ
Liberty Media Is Trading At A Meaningful Double-Digit Discount To Its NAV
Siddharth Arora • 27 Comments
Siddharth Arora • 27 Comments
Sat, Oct. 1, 9:57 AM
- A holder of the original Liberty Media in 2004 - prior to the split of its U.S. and international assets into separate companies - would have seen annualized returns of 13% vs. 7.5% for Berkshire Hathaway and 7.7% for the S&P 500, according to Gamco's Christopher Marangi.
- While the complex structure of Liberty's businesses and assets - housed under five main corporate structures, and within that group nine stocks, including seven tracking stocks - can make it challenging for investors, there's plenty to gain from taking the time to understand it.
- A handy guide is here.
- "The Malone magic formula starts with good businesses that are within his core competency, then putting the right management teams in place and leveraging those companies appropriately,” says Marangi, noting one of Gabelli's golden rules is be on the same side of the table as John Malone.
- Tickers: LSXMK, LMCK, BATRK, QVCA, LVNTA, LBTYK, LILAK, LBRDK, LTRPA, LMCA
Sun, Sep. 18, 9:02 AM
- Formula One cannot be run like a dictatorship, even if many people in the sport are used to that, according to the new chairman appointed to work with commercial supremo Bernie Ecclestone.
- Chase Carey, who took on the role as part of Liberty Media's (NASDAQ:LMCA) takeover of the sport, further said that F1's U.S. expansion should ultimately look at big cities like Los Angeles, New York or Miami.
- The primary concern, however, is building long-term value and investing in the future.
Tue, Sep. 13, 2:07 PM
- Liberty Media's (LMCA +16.6%) deal to acquire and become Formula One is "transformative" to the company, Citigroup says in upgrading the stock to Buy.
- The firm lifted its target price to $32 from $22, implying more than 14% upside from today's elevated price.
- "A few years ago, press reports suggested an F1 IPO would value the firm at $12 billion EV," write analysts Jason Bazinet and Michael Cohen. "At $12 billion EV, we previously described Formula One as a ‘trophy asset.' But Liberty acquired the asset for just ~$8 billion EV. We suspect lower valuation based on erosion in F1's financial performance due to more F1 revenues flowing to the racing teams (versus F1 equity holders). But, the lower price tag reflects these new economics."
- Pivotal Research also launched coverage on Liberty Media, initiating with a Buy rating and $35 price target, implying about 25% upside from today's higher price.
Tue, Sep. 13, 12:45 PM
Thu, Sep. 8, 5:46 PM
- With a deal sealed to take over Formula One, U.S.-based Liberty Media (NASDAQ:LMCA) says it doesn't have big alterations in mind to change the decidedly continental appeal of the sport.
- "Realistically it's a global sport. We're not trying to Americanize the sport," said new Formula One Chairman Chase Carey. "We have great respect for the European foundations of it. Europe is critically important to us."
- That doesn't mean there isn't room for growth in America. Only one round of the 21-race championship takes place in the U.S.: at the Circuit of the Americas in Austin, Texas. And races in the sport's historical locations have struggled to profit.
- "America is an opportunity; I think we can do a lot more in America; it's probably more long-term than short-term," Carey says.
- As for collaborating on leadership with the sport's longtime impresario, Bernie Ecclestone (still CEO): "The best businesses are partnerships where people work together as a team. We'll work closely and as partners and we'll figure it out."
- Liberty Media Group will become the Formula One Group when the transaction completes, and its symbols will change from LMCA, LMCB, and LMCK to FWONA, FWONB, and FWONK.
- Previously: Formula One faces major shake-up (Sep. 08 2016)
Thu, Sep. 8, 5:08 AM
- Formula One faces its biggest shake-up in decades with the announcement that John Malone's Liberty Media (NASDAQ:LMCA) has agreed to take control of the racing group, Reuters reports.
- The $8B deal heralds a new era for the European-dominated sport that has long sought to break into the U.S. market.
- It could also accelerate the exit of Bernie Ecclestone, the Briton who has run the enterprise for nearly 40 years and built up a business with annual turnover of around $1.9B.
Wed, Sep. 7, 5:51 PM
- Liberty Media (NASDAQ:LMCA) has confirmed its transaction to take control of Formula One.
- Liberty will acquire Formula One through transactions that give the racing group an enterprise value of $8B, and an equity value of $4.4B.
- It will use cash and newly issued shares of its Liberty Media Group (NASDAQ:LMCK) tracking stock along with a debt instrument exchangeable into LMCK as part of a set of transactions where it will take 100% of the shares of Delta Topco, the parent company of Formula One.
- It's bought an 18.7% minority stake in Formula One for $746M in cash; when it takes full control, CVC Funds won't be the controlling shareholder, and Liberty will rename its Liberty Media Group the Formula One Group. (Liberty Media symbols will change from LMCA, LMCB, and LMCK to FWONA, FWONB, and FWONK.)
- The selling consortium including CVC will own about 65% of that group's equity, and a CVC representative will join the Liberty Media board.
- Selling stockholders will get a mix of consideration, including $1.1B in cash, 138M new shares of LMCK, and a $351M exchangeable debt instrument.
Wed, Sep. 7, 4:10 PM
- Liberty Media (NASDAQ:LMCA) will initially take a bigger initial stake in Formula One than planned, progressing toward an eventual full purchase of the racing group.
- The company will buy 18.7% of F1 for $4.4B. It had reportedly been looking at a stake of 10-15% at first.
- As expected, Fox executive VP Chase Carey will become chairman of F1 while Bernie Ecclestone will hold the CEO spot.
Mon, Sep. 5, 1:51 AM
- Liberty Media (NASDAQ:LMCA) is nearing a deal to acquire a 10-15% stake in Formula One for between £1B-£2B, with an agreement to take full control of the business further down the line, FT reports.
- The transaction will likely keep F1 chief Bernie Eccelstone in the driving seat of the sport. He currently owns over 5% of the business with P-E firm CVC Partners the biggest shareholder with over 35%.
- Chase Carey, the executive vice chairman of 21st Century Fox (NASDAQ:FOX), would become the chairman of F1, replacing Peter Brabeck-Letmanthe.
Thu, Sep. 1, 4:44 PM
- Liberty Media (LMCA -0.3%) has shuffled leadership and named a new chief financial officer.
- Chief Development Officer Mark Carleton will take over that CFO role, and will continue to report to CEO Greg Maffei as he takes on oversight of accounting and treasury functions.
- Christopher Shean, the company's CFO since 2011, will become senior adviser and continue to oversee some key Liberty Media investments.
- The company also tapped Albert Rosenthaler as its chief corporate development officer, focused on finding nad pursuing investment and other opportunities nad working on strategic direction.
Fri, Aug. 12, 1:11 PM
- Liberty Media (NASDAQ:LMCA) has priced an announced offering of senior debentures tied to Time Warner (NYSE:TWX) stock.
- Liberty's agreed to sell $444.61M of 2.25% exchangeable senior debentures due 2046. Those debentures are exchangeable at Liberty's option into Time Warner stock, cash, or a combination.
- The shares of TWX attributable to a debenture represent an exchange price of $104.55/share, with about 4.25M shares of TWX attributable.
- Shares of LMCA are down 1.2% today; TWX is flat.
Thu, Aug. 11, 12:06 PM
- Liberty Media (LMCA +1.5%) says it's launching a private offering of senior debentures exchangeable for Time Warner (TWX +0.7%) stock.
- Holders will have the option to exchange the debentures, at which point Liberty has the option to deliver Time Warner stock, cash, or a combo of the two.
- Liberty will use proceeds for general purposes "including to make acquisitions."
Fri, Aug. 5, 3:24 PM
- On the company's earnings call, Liberty Media (NASDAQ:LMCA) CEO Greg Maffei said that if the company went for streaming music, a purchase would be organized in the company's Sirius XM (SIRI -0.1%) rather than at the parent level, where some other music businesses are housed.
- Shares in Pandora (P -1.7%) had risen two weeks ago on reports that Maffei had previously floated the idea of buying the Internet radio company for $15/share. Pandora shares are up more than 10% since that report, to $13.59 today.
- "I don't know how I could have been more negative on streaming services," Maffei said in the Q&A. But: "I think it's highly unlikely that anything would happen at the Liberty level. Sirius is our play for the online play for music, whether it's distributed through satellite or, as Sirius already does, through the online system."
- Several big players are entering subscription streaming, "likely to further commoditize the market," he notes. "Spotify (Private:MUSIC) did something, like, for the last year, $3.54 of ARPU per month and had 82% or 84% content costs. That sounds like a very hard business to me. And that is with Apple, Amazon, Google entering more deeply and more strongly."
- Liberty Sirius XM Group (NASDAQ:LSXMA) is up 0.2% today.
Fri, Aug. 5, 10:25 AM
- Liberty Media (NASDAQ:LMCA) has moved up 0.7% after Q2 earnings where revenues beat again on solid results from its businesses.
- Once again, results were dominated by those of Sirius XM, and Liberty increased its holdings yet again, to a 64.8% stake as of July 22. That broadcaster reported solid earnings and subscriber gains last week.
- In the Liberty Sirius XM Group (LSXMA +1%), revenue had grown 10% to a record $1.2B, net income was up 68% to $173M and subscribers grew 8% to more than 30.6M.
- Liberty Braves Group (BATRA +0.1%) revenue rose $28M to $131M and operating income was up $3M to -$3M, mainly due to increased ticket sales and broadcast revenue in a quarter heavy with home games (44 vs. a year-ago 35)
- Live Nation hit double-digit growth in revenue and adjusted operating income.
- Press Release
Fri, Aug. 5, 8:26 AM
Mon, Aug. 1, 11:50 AM
- Comcast (CMCSA +0.6%) and the Atlanta Braves (LMCA -0.2%, BATRA +0.1%) are extending a deep partnership with a deal on a new multi-site enterprise network for the Major League Baseball team.
- Comcast Business is building the network that connects the Braves' front offices with its minor-league operations in Georgia and stretching to Virginia, and including a pair of 100-Gbps lines into the Braves' upcoming new ballpark.
- A five-site Ethernet Network Service solution will support speeds of 20 Mbps-200 Mbps between the offices.
- The two companies had set a broad multi-year deal covering the team's new 60-acre stadium complex and including a new office for Comcast as a signature tenant in the SunTrust Park development.