Liberty Media Corp.
), which owns 53% of
Sirius XM Holdings Inc.
), has called off its plan to buy the rest of the shares of the
satellite-radio provider. Meanwhile, Liberty Media announced the
formation of two tracking stocks, one to be named as Liberty
Media Group while the other will be Liberty Broadband Group.
In Jan 2014, the Liberty Media expressed its desire to take
full control of SIRIUS XM Radio, in a deal worth more than $10
Liberty Media's tracking stock group, Liberty Broadband Group,
will comprise the company's 27% stake in
Charter Communications, Inc.
), 1% stake in
Time Warner Cable Inc.
), its subsidiary TruePosition and other investments. The second
tracking stock group will consist of the SIRIUS XM stake and
interests in other media and entertainment businesses.The present
Liberty Media stockholders will gain one Liberty Media Group
share and four shares of Liberty Broadband Group along with the
right to more cable stocks.
Liberty Media is aggressively pursuing the idea of Charter
Communications acquiring Time Warner Cable, the second largest
cable MSO (multi service operator) in the U.S. However, Charter
Communications has lost to Comcast Corp. in its bid to acquire
Time Warner Cable.
In the recently concluded quarter, Liberty Media reported
mixed financial results. Earnings came in above the Zacks
Consensus Estimate whereas revenues lagged the same. Liberty
Media generated $358.6 million of cash from operations compared
with $293.2 million in the prior-year quarter. Free cash flow in
the reported quarter was $303.27 million against $269.5 million
in the year-ago quarter.
Liberty Media currently has a Zacks Rank #3 (Hold).
CHARTER COMM-A (CHTR): Free Stock Analysis
LIBERTY MEDIA-A (LMCA): Free Stock Analysis
SIRIUS XM HLDGS (SIRI): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
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