Liberty Media CorpNASDAQ
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.
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.
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, Jul. 21, 3:17 PM
- Ahead of its earnings after the bell, Pandora Media (NYSE:P) has given up a bump fueled by a buyout-offer story, now down 0.7%.
- It had risen as much as 10.3% (to $13.62) following a report that Liberty Media (LMCA -0.1%) had floated a $15/share offer to buy the company and combine it with Sirius XM (SIRI -0.2%).
- Combining the two radio services could benefit from "hidden synergies," says Piper Jaffray's Stan Meyers. Sirius XM could take advantage of a strong ad sales team as it thinks about an ad-supported service, and it could tap a data-rich environment at Pandora to convert some of that company's 100M-plus users into paid customers.
- Meyers has Overweight ratings on both companies and a price target of $5.25 on SIRI (implying 26% upside) and a target of $18 on Pandora (47% upside, and closer to Pandora's feelings of true value around $20/share).
- Liberty Sirius XM Group shares: LSXMA +0.4%; LSXMB +0.4%; LSXMK -0.1%.
Mon, May 9, 8:28 AM
Fri, Apr. 15, 6:53 PM
- Liberty Media (LMCA +0.8%) has executed its plan to recapitalize into three new tracking stocks, reflecting its interest in the Atlanta Braves and Sirius XM (NASDAQ:SIRI).
- In accordance with its previously announced plan, the company exchanged each share of A-series common stock for: one share of Liberty Sirius XM (LSXMA); 0.1 shares of Liberty Braves (BATRA); and 0.25 shares of Liberty Media A-series common (NASDAQ:LMCA).
- All shares go to the corresponding series of stock -- so holders of series C (NASDAQ:LMCK) will get LSXMK, BATRK, and LMCK back, for example.
- All series will trade on Nasdaq Global Select, except for Liberty Media series B (NASDAQ:LMCB) and Liberty Braves series B (BATRB), which trade OTC. Trading in the new shares is expected to begin on those markets Monday.
- Now read Sirius XM: Liberty Buyout Is Coming »
Fri, Feb. 26, 11:54 AM
- Liberty Media (NASDAQ:LMCA) is up 1.1% following Q4 earnings where revenues beat expectations, and where the company entered a settlement in which it receives $775M from Vivendi.
- Again, results were dominated by those of Sirius XM -- Liberty holds a newly increased stake of 62.1% of Sirius XM, which makes up 90% of Liberty Media's market cap. Aside from that, Liberty expects to net proceeds from the Vivendi settlement after taxes and legal fees of about $420M.
- Excluding cash at Sirius XM, Liberty Media cash and liquid investments came to $104M.
- A stockholder meeting is set for April 11 on recapitalizing into three tracking stock groups (Liberty Braves, Liberty Media, Liberty Sirius XM) after the SEC declared its S-4 effective.
- Conference call link
- Previously: Vivendi to pay Liberty Media $775M to settle dispute (Feb. 26 2016)
Fri, Feb. 26, 7:35 AM
- Liberty Media (NASDAQ:LMCA) to receive $775M in a settlement payment from Vivendi.
- Settles all claims related to a dispute that arose from a 2001 transaction. Liberty Media had prevailed in the U.S. District Court for the Southern District of New York with a jury verdict of approximately 765M euro.
- Both sides had appealed the earlier judgment.
- As a result of the settlement all appeals have been dismissed and the parties have provided each other with mutual releases. Following the payment of a contingency fee to its legal counsel, as well as amounts payable to Liberty Global plc, a former subsidiary which was a plaintiff in the action, Liberty Media expects to net after-tax proceeds of approximately $420M in cash.
Fri, Feb. 26, 7:35 AM
- Liberty Media (NASDAQ:LMCA): Q4 Net income of $134.63M.
- Revenue of $1.21B (+10.0% Y/Y) beats by $20M.
- Shares +2.01% PM.
Nov. 12, 2015, 7:35 AM
- One will be designated as the Liberty Braves Group, one as the Liberty Media Group, and one as the Liberty Sirius Group.
- Owners of Liberty's Series A, Series B, and Series C common stock would receive shares of the corresponding series of the new stock groups.
- CEO Greg Maffei will discuss this and more at the company's investor meeting today beginning at 12:30 ET.
Nov. 9, 2015, 8:05 PM
- With the review of Charter Communications' (NASDAQ:CHTR) buyout of Time Warner Cable (NYSE:TWC) proceeding apace at the FCC, the agency is sending requests tied to cable mogul John Malone's holdings not only in Charter but in content companies like Discovery (NASDAQ:DISCA) and Starz (NASDAQ:STRZA), which supply Charter rivals.
- The agency has sent letters to the companies that list Malone as their chairman -- Liberty Media (NASDAQ:LMCA), Liberty Interactive (NASDAQ:QVCA) and Liberty Broadband (NASDAQ:LBRDA), which holds 26% of Charter -- and asked about Malone's influence over those entities as well as the content creators and DirecTV.
- It's a "pretty meaningful request," says BTIG's Rich Greenfield, while Craig Moffett points at the Comcast deal for NBCUniversal in saying that Malone's tangled ownership is "probably not a big issue."
- Malone has a 46.6% voting interest in Liberty Broadband, which would be entitled to vote no more than 25.01% of shares in the new combination, Charter has said. His interests in Discovery and Starz are "minority interests" where he wouldn't control day-to-day decisions.
- The American Cable Association (representing smaller providers) argues that Malone's interests aren't insubstantial and that consumers can expect higher rates unless the FCC imposes conditions on the deal.
- Previously: BTIG: Are TWC, Charter too strong separately to sell merger case? (Nov. 02 2015)
- Previously: Charter call: Talking wireless ambitions, slamming password sharing (Oct. 29 2015)
Nov. 4, 2015, 4:29 PM
- Liberty Media (NASDAQ:LMCA): Q3 Net income of $167M
- Revenue of $1.28B (+8.5% Y/Y) in-line.