Liberty Media Corporation
), which owns interests in a broad range of businesses including
media, communications and entertainment, is planning to increase
its stake in
Live Nation Entertainment, Inc.
). The company is keen on buying an additional 3.7 million shares
of Live Nation Entertainment.
Liberty Media's intention to purchase Live Nation Entertainment
was born after the latter proposed $500 million in convertible
notes. Live Nation Entertainment is offering $250 million in
convertible senior notes payable in 2019 and the remaining $250
million payable in 2022. Live Nation plans to use the proceeds for
Liberty Media currently holds a 26% stake in Live Nation
Entertainment, the largest concert promoter and ticketing company
in the U.S. We believe the deal, if successful, will help to drive
Liberty Media's earnings and revenues. It is worth noting that Live
Nation Entertainment has performed reasonably well in the last one
year. The company has surpassed the Zacks Consensus Estimate in
three of the last four quarters with an average earnings surprise
Liberty Media also holds a 53% stake in SIRIUS XM Radio. With
nearly 25.6 million subscribers under its coverage, SIRIUS XM, the
largest satellite radio service provider, is expected to provide
huge financial synergies to Liberty Media over the long haul.
Liberty Media currently has a Zacks Rank #5 (Strong Sell). In the
previously concluded quarter, the company reported dismal results
with both the top and the bottom line missing the respective Zacks
Consensus Estimate. Failing to acquire Time Warner Cable also came
as a temporary blow that did not allow the company to gain strong
traction in the U.S. cable industry.
Other Stocks to Consider
Better-ranked stocks worth considering in the media industry
The Walt Disney Company
). Both the stocks carry a Zacks Rank #2 (Buy).
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DISNEY WALT (DIS): Free Stock Analysis Report
LIBERTY MEDIA-A (LMCA): Free Stock Analysis
LIVE NATION ENT (LYV): Free Stock Analysis
NEWS CORP-B (NWS): Free Stock Analysis Report
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