Liberty Media Corporation said Thursday its board has approved a proposal to recapitalize into three tracking stock groups.
Advertisement
Liberty Braves Group will encompass the Atlanta Braves baseball team and its stadium, which is in the midst of a development project. Liberty Sirius Group will be linked to Liberty subsidiary Sirius XM Holdings Inc.
One tracking stock would be designated as the Liberty Braves Group, one as the Liberty Media Group and one as the Liberty Sirius Group.
Liberty, which already has a complex structure, makes this move as many companies are stripping down and spinning off businesses in an attempt to give investors more focused choices and drive profit. And other holdings – including investments in Live Nation, Time Warner and Viacom – would be shown Liberty Media Group.
When all’s said and done, there will be nine different stocks trading on NASDAQ: Series A, B, and C shares for each of the three tracking stocks. The rights offering will also be subject to various conditions, including the creation of the new tracking stocks. Liberty Sirius Group would report on Liberty’s ownership stake in SiriusXM.
Advertisement
The company will discuss the announcement in further detail at today’s previously announced investor meeting. It take on a $250 million margin loan obligation. The offer and sale of shares of the proposed tracking stocks will only be made pursuant to an effective registration statement. This doesn’t affect other Liberty-related stocks including Liberty Interactive and Liberty Ventures Group.
