Liberty Media to split off Liberty Entertainment (DirecTV)

[Scott Greczkowski]

Liberty Media to split off Liberty Entertainment
By Yinka Adegoke

NEW YORK (Reuters) - Liberty Media Corp will spin off its stake in DirecTV Group and other assets into a publicly traded company called Liberty Entertainment Group SA, taking the first step to simplify ownership of the satellite TV provider.

Liberty's 50 percent stake in DirecTV will be the dominant asset in Liberty Entertainment, accounting for more than 80 percent of its value.
Wall Street analysts said the long-anticipated move could eventually lead to Liberty Entertainment and DirecTV being merged into one trading entity, which would make it easier for Malone to trade the stock for acquisitions in the future.

"We believe that the company would not have announced these spin plans without at least a substantial road-map toward combining DirecTV and Liberty Entertainment into a single entity that would be acceptable to DirecTV's independent directors," said Vijay Jayant, an analyst at Lehman Brothers.

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[harshness]

DIRECTV was never long for the Malone portfolio.

 

[Rey]

does this announcement mean a tighter budget for D? i don't need the penny pinching that charlie does over at E that saves me no money at all.

 

[Van]

Monkey see monkey do.