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
Jan. 6, 2014, 11:22 AM
- Liberty Media (LMCA -1.9%) CEO Greg Maffei says he would be surprised if any bidder emerged with an offer as high as $150 per share for Time Warner Cable (TWC +0.1%).
- Analysts are taking the comment somewhat lightly as Liberty is still expected to put together an offer before Charter is able to beat it to the punch. The deal by Liberty to acquire full control of Sirius XM Radio sets it up to scrap together more capital for a TWC bid.
Jan. 6, 2014, 8:39 AM
- Shares of Sirius XM Radio (SIRI) race 7.8% higher to $3.85 in premarket trading following an offer late Friday from Liberty Media (LMCA) to take over the company in a deal which values the company at $3.68 per share.
- In a conference call with analysts, execs said if the deal is completed it would allow Liberty to start buying back shares at an increased pace.
Jan. 3, 2014, 6:24 PM
- After coming off a halt, Sirius XM (SIRI) is trading at $3.75 after hours in the wake of Liberty Media's (LMCA) offer to assume full ownership of the satellite radio owner.
- That represents a 5% gain from Sirius' closing price of $3.57, and is 1.9% above the $3.68/share buyout price implied by Liberty's all-stock offer. Some Sirius shareholders might be betting on a better offer arriving.
- Liberty shares are up 0.5% AH.
Jan. 3, 2014, 4:51 PM
- Liberty Media (LMCA), which already owns a majority stake in Sirius XM (SIRI), is proposing to make Sirius a 100%-owned subsidiary through an all-stock deal. (PR)
- Liberty proposes to have each Sirius converted into a 0.076 new Liberty Series C shares, and then distribute, on a 2:1 basis, Series C shares to all holders of Liberty's Series A and B shares.
- The exchange ratio values Sirius at $3.68/share based on Liberty's Friday close; that's an $0.11, or 3%, premium to Sirius' closing price of $3.57.
- Sirius' public shareholders would own 39% of the new company, which (based on current prices) stands to have a market cap of $27B.
- Sirius shares are halted. CC at 5PM ET.
Dec. 20, 2013, 4:17 AM
- Liberty Media (LMCA) reportedly believes that a merger of Charter Communications (CHTR), in which Liberty owns 27%, and Time Warner Cable (TWC) could generate annual synergies of $700M.
- Time Warner isn't so convinced and pegs the figure at around $500M, while MoffettNathanson analyst Craig Moffett provides an estimate of $450M and Barclays $560M.
- The expected large stock component of any deal would mean that the size of the synergies would play an important part in the attractiveness of the merger to shareholders.
- Charter had been looking to make a bid for Time Warner this week, but is likely to delay any proposal until the New Year.
Dec. 4, 2013, 3:55 PM
- Deutsche Bank weighs in on the chase for Time Warner Cable (TWC -1.4%) that has lit a fuse under the entire sector.
- The investment firm thinks only one bidder will emerge - Charter (CHTR +0.1%) with help from Cox or Comcast (CMCSA +0.2%) - but at a deal price lower than $140 per TWC share.
- Previous comments from Liberty Media (LMCA -1.6%) on a "merger of equals" also limits the premium a Liberty-backed bid would pay, notes Deutsche.
Dec. 3, 2013, 8:55 AM
- Charter Communications (CHTR) CEO Thomas Rutledge says the company doesn't need to buy Time Warner Cable (TWC) in order to grow its business.
- During an exchange on CNBC with Liberty Media's (LMCA) Greg Maffei sitting in, Rutledge called the run for TWC a "rather frothy" experience with both Cox Communications and Comcast (CMCSA) in the mix.
- Maffei, for his part, said TWC isn't the only cable player out there that would make an attractive fit for Charter.
Nov. 25, 2013, 1:59 AM
- Comcast (CMCSA) and Charter (CHTR) have reportedly discussed breaking up Time Warner Cable (TWC) in any joint bid for the company in order to overcome antitrust objections to a deal.
- The transaction would resemble Comcast's and Time Warner's acquisition of Adelphia Communications in 2006, when Comcast gained 1.7M customers and Time Warner 3.3M.
- A break-up of Time Warner would also make it easier for Charter to gain financing, given that it's much smaller than Time Warner.
- Meanwhile, the NYT carries a profile of John Malone, whose Liberty Media (LMCA) owns 27% of Charter. The article reports that Time Warner Cable has contacted Comcast about a possible transaction, leading to early talks.
Nov. 22, 2013, 2:46 AM
- Charter Communications (CHTR) is reportedly close to a deal with banks to borrow money to fund a cash and stock offer for Time Warner Cable (TWC).
- Other sources of financing could include sovereign wealth funds and wealthy individuals,
- Charter's largest shareholder, Liberty Media (LMCA), could provide investment in order keep its stake in Charter at or above 25% in the event the latter issued stock to help pay for the purchase. Liberty owns 27% at the moment.
- However, a deal remains a tall order. Time Warner has reacted negatively, while its market cap of $34.45B dwarfs Charter's $13.2B.
Nov. 5, 2013, 9:08 AM
- Liberty Media (LMCA): Q3 Net Income of $116M.
- Revenue of $1.11B misses by $0.02B. (PR)
Oct. 10, 2013, 3:25 PM
- Media stocks outperform the broad market with comments from Liberty Media's (LMCA +2.5%) John Malone on the monetization possibilities in the industry not hurting the festive mood one little bit.
- If Malone is to be believed, new forms of content distribution will lead to riches across the sector.
- Advancers: Time Warner Cable (TWC) +5.6%, Charter Communications (CHTR) +3.9%, CenturyLink (CTL) +3.3%, CBS (CBS) +3.9%, Netflix (NFLX) +5.5%.
- Liberty Media Analyst Day webcast
- Related ETFS: PBS
Oct. 10, 2013, 1:40 PM
- Liberty Media's (LMCA +2.6%) John Malone thinks a joint effort by cable operators (CVC, CHTR, TWC) could help monetize the concept known as TV Everywhere.
- The exec sees a syndicated product from the sector that would help create leverage to keep programming costs lower and make it easier to compete with Netflix.
- Comcast (CMCSA +1.8%) might already be a step ahead with its Viper project. The product could eventually be used to syndicate Xfinity programming to Pay-TV customers nationally.
Oct. 10, 2013, 8:26 AM| Oct. 10, 2013, 8:26 AM
Oct. 10, 2013, 7:00 AM
Sep. 24, 2013, 11:32 AM
- Nissan (NSANY.OB) announces that Apple iTunes Radio will be offered in several new 2014 models to mark the first major deal for the service with an automaker.
- Though the news isn't likely to move the meter on Apple too much, it could have some impact on Sirius XM radio (SIRI, LMCA) which would just as soon have deals with all the large automakers locked up.
Sep. 12, 2013, 1:39 PM
- Barnes & Noble (BKS -1.4%) Chairman Leonard Riggio is easily re-elected but doesn't give investors much of an idea on where the company's digital strategy is heading.
- Things got a little testy during the open mike Q&A with investors when Leonard Riggio was asked why he didn't buy the company's retail stores. Riggio cut the inquiries short by saying he didn't have to explain his rationale.
- "Look, no one is happy with Nook," said Liberty Media's (LMCA) Gregory Maffei. His firm holds 17% of BKS, but his sentiment is probably echoed by a majority of shareholders.
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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