Liberty Media Is Trading At A Meaningful Double-Digit Discount To Its NAV
Siddharth Arora • 27 Comments
Siddharth Arora • 27 Comments
Investing With An Edge: Liberty Media
Andrew Walker, CFA • 14 Comments
Andrew Walker, CFA • 14 Comments
Apr. 2, 2014, 8:05 AM
- The 10% drop in the stock price of Comcast (CMCSA) over the last seven weeks has complicated its planned merger with Time Warner Cable (TWC).
- The value of Comcast's offer is now down to $143.55 per share compared to $158.82 per share when the deal was announced.
- What to watch: Though the acquisition agreement doesn't contain a collar which forces Comcast to kick in more shares, a higher deal price from another bidder could still emerge. Charter Communications (CHTR) with backer Liberty Media (LMCA) in tow comes to mind.
Mar. 14, 2014, 9:20 AM
Mar. 14, 2014, 8:21 AM
- Shares of Liberty Media (LMCA) are flying higher in early trading after the company creates a pair of tracking stocks.
- Analysts say the new setup, which includes pulling an offer to buy out Sirius XM (SIRI), removes a lot of risk from the equation while providing clearer channels for investors to bet on the media conglomerate's underlying assets.
- SIRI -0.6% as its left dangling in the wind a bit, while LMCA is +9.0% premarket.
Mar. 13, 2014, 6:22 PM
- Liberty Media (LMCA) is creating two new tracking stocks: One will be known as Liberty Media, and the other Liberty Broadband. Investors will receive one share of the former tracking stock, and four shares of the latter, for each Liberty share they currently own.
- Shareholders will also get "a subscription right to acquire one additional series A or series B share of Liberty Broadband tracking stock for every five shares of series A or five shares of series B Liberty Broadband tracking stock they receive in the Distribution."
- The subscription rights will be priced at "a 20% discount to the 20-trading day volume weighted average trading price of Liberty Broadband tracking stock following the closing of the Distribution."
- The tracking stocks are expected to trade under the symbols LBRDA and LBRDB. The broadband tracking stock will cover Liberty's stakes in Charter and Time Warner Cable, and its TruePosition subsidiary.
- As a result of the change, Liberty says its previous offer for Sirius XM (SIRI) is "no longer applicable." The company adds it remains an "enthusiastic" owner of 53% of Sirius.
- SIRI -2.1% AH. LMCA +0.7%.
Feb. 28, 2014, 4:43 PM
- Comcast (CMCSA) reportedly is considering options for how to divest ~3M cable subscribers as part of a takeover of Time Warner Cable (TWC), including spinning them off in a new publicly-traded company.
- Regulators may push for the spin-out option because it would create a new competitor; such a new company would be the fourth-largest U.S. cable company by subscribers, trailing the merged CMCSA-TWC, Cox Communications and Charter Communications (CHTR).
- Comcast also may have received interest from several companies that want to buy the cable assets; Charter is interested, Liberty Media (LMCA) CEO Greg Maffei said today on a conference call, and Bright House Networks and Suddenlink are said to have expressed interest.
- Comcast hasn’t picked which cities would be divested or spun out, and sources say it won’t make a decision for at least three months as regulators examine the TWC deal.
Feb. 28, 2014, 7:58 AM
- Liberty Media (LMCA) posts quarterly earnings which include purchase accounting of the results of SiriusXM.
- At the end of the quarter, Libery Media reports it held a fair value amount in Charter of $3.67B, in Live Nation of $1.05B, and $255M in Barnes & Noble.
- Previous 2014 guidance from the company is affirmed.
Feb. 28, 2014, 7:44 AM
- Liberty Media Corp (LMCA): Q4 Revenue of $1.03B (+120.6% Y/Y) in-line.
Feb. 19, 2014, 4:22 AM
- John Malone has given the rights of first refusal to the CEOs of Discovery Communications (DISCA) and Liberty Global (LBTYA) to buy his holdings in their respective companies.
- Discovery chief David Zaslav will be able to purchase Malone's 29% voting stake in the TV broadcaster; at Liberty, Michael Fries will be able to acquire Malone's 27% voting interest.
- However, Malone has no intention of reducing his involvement in the businesses just yet, nor has he laid out any similar plans for his holding in Liberty Media (LMCA). Rather, the rights given to Zaslav and Fries represent planning for the future.
Jan. 29, 2014, 3:45 PM
Jan. 27, 2014, 5:40 PM
Jan. 26, 2014, 1:39 AM
- Comcast (CMCSA) reportedly prefers joining up up with Charter Communications (CHTR) to bid for Time Warner Cable rather (TWC) than making an offer on its own.
- Comcast thinks TWC's asking price of $160 a share is too high, while the latter isn't interested in selling itself in a piecemeal fashion.
- Charter is willing to let Comcast have TWC's New York-area cable systems in exchange for Comcast backing Charter's bid. The New York network would fit in nicely with Comcast's operations in Connecticut and New Jersey.
Jan. 17, 2014, 10:07 AM
- Comcast (CMCSA -0.4%) will have a lot to say in how consolidation in the cable industry (CHTR, LMCA, CVC) works itself out.
- The company seems to play a role, major or minor, in nearly every permutation of a Time Warner Cable (TWC +0.3%) takeover, note analysts.
- Brean Capital on Comcast's CEO: "Brian Roberts is very much a kingmaker here."
Jan. 9, 2014, 2:30 PM
Jan. 7, 2014, 6:46 PM
- Sirius XM Radio (SIRI +0.8%) has named former DirecTV CEO Eddy Hartenstein, former DaimlerChrysler CEO James Holden, and long-time American Express executive Joan Amble to a 3-person special committee to evaluate Liberty Media's (LMCA +0.4%) $3.68/share bid.
- SIRI shares closed the day at $3.86, a 4.9% premium to Liberty's bid, as investors continue holding bets that the offer will be boosted.
Jan. 7, 2014, 9:01 AM
- European cable giant Altice plans to go public in an $1B IPO on the Amsterdam exchange.
- The company will likely look to reduce its debt load after raising the funds, but could also go on a M&A spree.
- Execs with Altice say they have up to 10 new acquisition targets which means it could bump up against Liberty Global (LMCA) with some of its bidding.
Jan. 7, 2014, 7:53 AM
- Ralph Nader speaks out about Liberty Media's (LMCA) pursuit of Sirius XM Radio (SIRI) which has stirred some debate.
- The legendary consumer advocate isn't concerned about the direction of the companies involved, he just thinks the offer is too low for SIRI shareholders.
- SIRI +0.8% premarket to $3.86 vs. LMCA's bid of $3.68.
Liberty Media Corp. engages in the business of media, communications and entertainment. The company operates through its subsidiaries, which includes Atlanta National League Baseball Club, Inc. (ANLBC) and TruePosition, Inc. ANLBC owns and operates the Atlanta Braves, a major league baseball... More
Industry: Broadcasting - TV
Country: United States
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