Mon, Aug. 17, 8:06 AM
- Liberty Interactive (NASDAQ:LVNTA), (NASDAQ:QVCA) agrees to buy zulily (NASDAQ:ZU) for $18.75 per share - $9.375 in cash and 0.3098 newly issued shares of QVCA. The deal is expected to close in Q4.
- A conference call to discuss the merger is set for 9 ET
- Source: Press Release
- Zulily closed Friday at $12.57.
- Previously: Zulily halted with news pending (Aug. 17)
Thu, Aug. 6, 1:01 PM
- Disney (NYSE:DIS) is down another 5.2% today (down 13.7% in two days) amid a deepening media stock sell-off that it seems to have spurred with its Tuesday earnings report, where it took a fair chunk of time on an analyst call acknowledging subscriber losses at ESPN.
- Also off broadly at midday: CBS -3.1%; CMCSA -4%; FOXA -9.8%; VIAB -15.6%; TWX -5%; AMCX -9.6%; LGF -6.7%.
- The sell-off is affecting several companies with a cable or pay-TV component, as sub losses at ESPN -- the most valuable part of any cable bundle -- point to the effect of cord-cutting.
- Analysts are agreeing that the trend of unbundling (or skinny bundling) might threaten the long-term health of the pay TV ecosystem, which has profited from the promise of rising subscription fees from providers. That's dependent on subscriber counts that don't significantly drop off.
- A growing pile of reports this week is indicating warning signs for subscriber counts. Dish Network (DISH -2.2%) had "almost certainly the worst quarter" for satellite subscriber losses, analyst Craig Moffett noted, as it merged Sling TV subscriber growth into its overall count, masking the core number. Moffett estimates Dish lost 151K satellite TV customers in Q2.
- Subscriber losses mean lower affiliate fees. Disney said in its call "we now expect domestic cable affiliate revenue [growth] to fall short of previous expectation, but still in high single digits."
- Other industry decliners: CRWN -8.9%; QVCA -5.4%; STRZA -6.1%
- Previously: Disney tumbles 8.9% after revenue miss; Iger talks ESPN again (Aug. 05 2015)
- Previously: Disney's Iger bullish on ESPN despite consumer changes, unbundling (Aug. 04 2015)
Wed, Aug. 5, 8:35 AM
Thu, Jul. 9, 5:29 PM
- There's been little news coming out of secretive Sun Valley -- where media moguls gather at the Allen & Co. conference for "summer camp" and sometimes rearrange billions of dollars with game-changing M&A -- but John Malone today dropped more hints about content consolidation.
- While media distribution companies have more obvious benefits from consolidation, Malone -- who has hands in Liberty Global (NASDAQ:LBTYA), Liberty Media (NASDAQ:LMCA), Liberty Interactive (NASDAQ:QVCA), Charter (NASDAQ:CHTR) and Starz (NASDAQ:STRZA) -- said economies can apply to content too.
- "It's all about global scale," he told CNBC. "If you want to be a meaningful player in most of any of these media communication businesses, you have to think about it."
- And while speculation boils about a tie-up between Malone's Starz (STRZA) and Lions Gate (NYSE:LGF) after the two swapped stock, Malone focused on the educational side: "I'm an engineer; what the hell do I know about content? Trying to understand where these ideas come from, how they get created and produced. The development of stories is really going to be important in this random-access world that Reed Hastings (NASDAQ:NFLX) is driving us into."
- Malone said Netflix changed the game, and that his companies "missed the boat a little bit" on over-the-top offerings.
- Today: NFLX +2.4%; LGF +0.9%; QVCA +0.3%; CHTR +0.2%.
Tue, Jun. 2, 6:46 PM
- Mogul John Malone floated an interesting idea today: Forget Sprint and T-Mobile -- the wireless industry could get its third major alternative to Verizon and AT&T (NYSE:T) with the merger of Charter Communications (CHTR -1.6%) and Time Warner Cable (TWC -0.9%).
- Malone was speaking at his various Liberty companies' annual meetings and noted that in 2012, the cable consortium SpectrumCo got an option to participate in a wireless MVNO service with Verizon (NYSE:VZ) after the wireless firm bought $3.9B in frequencies.
- Charter wasn't in SpectrumCo then, but merger partners TWC and Bright House are. “The concept that Comcast, a greatly enlarged Charter and Cox could together offer a WiFi-optimized connectivity service with a default to a Verizon MVNO is an interesting concept," Malone said.
- He thinks "there's very little dirty underwear" left to be found in a regulatory review of Charter-TWC after the past year's scrutiny.
- Also of interest regarding Charter capex and the dividend: “Everybody's going to say, ‘Oh he’s spending too much capital,’ but I think the end result with be worth it ... To a large degree we’re betting on Tom Rutledge and his team to wake up a sleepy cable company that was treading water in all honesty for a while and trying to satisfy shareholder pressures with buybacks and dividends as opposed to putting the money into having a competitive service offering.”
- Malone company shares today: LMCA -0.1%; LMCB flat; LMCK flat; LTRPA -0.9%; LTRPB +2.2%; QVCA +0.8%; LBRDA +0.1%; OTCQB:LBRDB flat; LBRDK -0.1%.
Mon, May 18, 4:31 AM
- Discovery Communications (NASDAQ:DISCA) CEO David Zaslav received total compensation of $156M in 2014, making him the highest-paid boss of a U.S.-listed company, excluding the top private-equity firms, an NYT-commissioned survey finds.
- Next on the list is Liberty Global's (NASDAQ:LBTYA) Michael Fries with $112M, while Gregory Maffei earned $74M for heading Liberty Media (NASDAQ:LMCA) and Liberty Interactive (NASDAQ:LVNTA). With Charter Communications' (NASDAQ:CHTR) Thomas Rutledge raking in $16M, four CEOs of companies controlled by or heavily associated with media mogul John Malone took home over $350M.
- Still, the Malone boys have nothing on Kenneth Griffin, the founder and CEO of P-E firm Citadel, who earned a mere $1.3B.
Fri, May 8, 12:56 PM
- Liberty Interactive (NASDAQ:QVCA) is trading down 2.3% despite beating EPS and revenue expectations for the first quarter though revenue at its largest unit, QVC Group, fell 2% overall as a strong dollar affected global results.
- QVC Group revenue breakouts: U.S., $1.342B (up 3%); Germany, $212M (down 15%); Japan, $199M (down 15%); UK, $156M (down 5%); Italy, $29M (down 9%).
- Mobile as a percentage of total eCommerce rose to 52.1% from last year's 38.5%, and eCommerce as a percentage of total revenue rose to 42% from 38.9%.
- In the Liberty Ventures Group, the continuing digital commerce companies (excluding floral and gifting business Provide Commerce, sold to FTD) showed revenue growth of 10%.
- Cash and liquid investments were $3.2B, flat from prior year.
- Press Release
Fri, May 8, 8:46 AM
Wed, Mar. 11, 4:48 PM
- Just hours after announcing it, QVC (NASDAQ:QVCA) has withdrawn an offering of additional senior secured notes, citing market conditions.
- QVC intended to use the offering to redeem existing higher-coupon notes. The company says it will proceed with redemption of the 7.375% notes due 2020, funded by cash on hand and that borrowed from its credit facility.
- Today: QVCA -1.2%.
- Earlier: QVC to offer senior secured notes (Mar. 11 2015)
Wed, Mar. 11, 11:04 AM
Mon, Mar. 9, 8:50 PM
- QVC (NASDAQ:QVCA) has refinanced its bank credit facility with a new senior secured facility at a lower rate.
- The new (multi-currency) facility has a line of credit of $2.25B, replacing the existing one that expires in March 2018. The new pact expires in March 2020.
- It'll be secured by QVC stock and the maximum leverage ratio is 3.5x.
- The company currently has a debt ratio of 70%.
Wed, Feb. 25, 6:48 PM
- Liberty Interactive (NASDAQ:QVCA) posted solid revenues on the back of QVC's strong U.S. performance, while the company said international markets did well despite currency headwinds.
- U.S. revenues increased 5% to 2B (for the full year, up 4% to $6.1B) and grew in all categories except electronics.
- Units sold increased 9% in Q4; average selling price slipped 5% to $61.64 and returns improved 40 bps.
- QVC outstanding debt was up $0.8B, to $4.6B at year's end.
- Liberty Ventures Group closed its sale of Provide Commerce to FTD on Dec. 31 for $145M in cash and about a 35% ownership interest in FTD.
- "We are also pleased by the performance of the Liberty Ventures and QVC Group stocks post the reattribution we completed in October, with both stocks trading above their respective pre-reattribution levels," says CEO Greg Maffei.
- The company repurchased about 3.8M QVC Group A shares for a total of $107M from Nov. 1-Jan. 31, leaving a buyback authorization of $677M. No repurchases of Liberty Ventures A (NASDAQ:LVNTA); remaining authorization there is $812M.
- Total consolidated GAAP cash at year's end was $2.31B. Total debt was $8.1B.
- Press release
Wed, Feb. 25, 5:22 PM
Wed, Jan. 28, 5:12 PM
- Liberty Interactive (QVCA,LVNTA,LVNTB) will pay an extraordinary cash distribution totaling $53.8M to holders of its 1% Exchangeable Senior Debentures due 2043.
- The payout is tied to a $10 special dividend issued by HSN (NASDAQ:HSNI) for its shareholders of record Feb. 9.
- With HSNI paying out its dividend on Feb. 19, Liberty will pay its distribution of $134.58/debenture on March 19, to debenture holders of record March 5.
Aug. 27, 2014, 6:36 PM
- Liberty Interactive (NASDAQ:LINTA) has finished spinning off its 22% TripAdvisor (NASDAQ:TRIP) stake into a new company called TripAdvisor Holdings. Starting tomorrow, TripAdvisor Holdings will trade under the symbols LTRPA and LTRPB.
- Liberty's stake carries with it 57% of TripAdvisor's voting rights. Wunderlich recently argued TripAdvisor might eventually buy back the stake in a cash/stock deal.
Aug. 25, 2014, 2:32 PM
- Wunderlich's Blake Harper has hiked his TripAdvisor (TRIP +1.5%) target by $12 to $100, albeit while reiterating a Hold.
- Harper cites a recent update to TripAdvisor's Hotel Listings page that he expects will yield "a better user experience and better monetization," the acquisition of local tours/activities site Viator, and a partnership with fast-growing car service Uber.
- He's also positive on Liberty Interactive's (LINTA -0.2%) plans to spin off its 22% TripAdvisor stake (comes with 57% voting rights) into a new holding company, and sees the move as "a precursor to an eventual combination that enables TRIP to consolidate the voting control in a cash/stock deal."
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