Liberty Media in Buying Spree - Analyst Blog

By
A A A

Recently, The Wall Street Journal reported that Liberty Media Corp. ( LMCA ) is on the verge to acquire a 25% stake of Charter Communications Inc. ( CHTR ) for a total consideration of approximately $2.5 billion. Charter Communications is currently the eighth largest pay-TV operator in the U.S. with around 4.2 million video subscribers.

Englewood, Colorado-based Liberty Media owns interests in a broad range of businesses, including media, communications and entertainment. The company offers its services predominantly in the North American region. Liberty Media currently has a Zacks Rank #3 (Hold).

During the last six months, Liberty Media has been restructuring its business model. In Jan 2013, the company spun off its Starz Entertainment segment as a separate entity. Starz is famous for its premium movie channels.

In the same month, Liberty Media acquired more than 50% controlling stake of SIRIUS XM Radio Inc. ( SIRI ), the largest satellite radio broadcaster of the U.S. Recently, the company also raised its stake to 27% in Live Nation Entertainment Inc. ( LYV ), the largest concert promoter and ticketing company in the U.S.

In Nov 2011, Liberty Media invested $204 million to purchase preferred stocks of Barnes & Noble, the world's largest bookseller, which can be converted into approximately 12 million shares of the latter. These preferred stocks will yeild an annual dividend of 7.75%.

Barnes & Noble has an extensive digital business through its powerful e-book reader called the "Nook." Nook currently commands around 25% of the global e-book market share and is the second largest e-book reader after the "Kindle" of Amazon.com.



CHARTER COMM-A (CHTR): Free Stock Analysis Report

LIBERTY MEDIA-A (LMCA): Get Free Report


LIVE NATION ENT (LYV): Free Stock Analysis Report

SIRIUS XM RADIO (SIRI): Free Stock Analysis Report

To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: CHTR , LMCA , LYV , SIRI

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

54,932,626
  • $16.50 ▼ 1.02%
46,253,261
  • $34.75 ▲ 0.90%
45,555,229
  • $130.28 ▼ 1.14%
39,616,045
  • $34.46 ▲ 1.32%
39,493,239
  • $8.72 ▲ 0.23%
38,489,283
  • $27.27 ▼ 1.30%
35,955,516
  • $18.14 ▲ 0.28%
33,142,871
    $18.27 unch
As of 5/29/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com