On Mar 25, 2014, we issued an updated research report on
Liberty Media Corp.
). Liberty Media is steadily restructuring its business model,
targeting to control several subscription-based businesses. The
company has started providing cable TV services and management is
striving to consolidate its foothold in the pay-TV market.
Except for one quarter, Liberty Media has delivered positive
earnings surprise in three quarters last year, with an average
beat of 386.15%. The company reported mixed financial results for
the fourth quarter of fiscal 2013 with the bottom line beating
the Zacks Consensus Estimate but the top line missing the same.
Currently, Liberty Media controls around 53% stake of SIRIUS XM
Radio. With nearly 25.6 million subscribers in its kitty, SIRIUS
XM, the largest satellite radio service provider, is expected to
generate huge financial synergies to Liberty Media. Furthermore,
the company also raised its stake to 27% in Live Nation
Entertainment, the largest concert promoter and ticketing company
in the U.S.
Liberty Media invested $204 million to purchase preferred stocks
of Barnes & Noble - the world's largets bookseller - which
can be converted into approximately 12 million shares of the
latter. Most importantly, Barnes & Noble has an extensive
digital business through its powerful e-book reader called the
"Nook". We believe the decision to invest in Barnes & Noble
will considerably bolster Liberty Media's financials.
Liberty Media, which holds a 27.3% stake in
Charter Communications Inc.
), was aggressively pursuing the idea of the company acquiring
Time Warner Cable Inc.
). However, Charter Communications has lost to
) in its bid to acquire Time Warner Cable. It disrupted Liberty
Media's plans to gain significant traction in the U.S. cable
Liberty Media currently carries a Zacks Rank #3 (Hold).
CHARTER COMM-A (CHTR): Free Stock Analysis
COMCAST CORP A (CMCSA): Free Stock Analysis
LIBERTY MEDIA-A (LMCA): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
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