Liberty to split into separate entities

Includes asset-based company that will seek acquisitions

Liberty Media Corp., the complex company controlled by John Malone that includes various tracking stocks, will split off into separate entities, including an asset-backed company that will seek acquisitions.

Once the plan is approved by shareholders, Liberty Media will separate its Liberty Capital and LIberty Starz tracking-stock groups from its Liberty Interactive tracking stock.

Liberty Interactive will become the asset-backed entity, enabling it to more easily make use of its stock to buy other companies and borrow money.

On a conference call Monday, Liberty Media CEO Greg Maffei declined to specify any acquisitions he might be eyeing.

Like now, Liberty Interactive will house the home-shopping network QVC as well as investments in a host of online companies, like IAC/InterActiveCorp. and Expedia.

The assets attributed to Liberty Starz, including Starz Entertainment, will be a tracking stock, and the soon-to-be new entity might also get a new name.

Likewise, Liberty Capital, which contains investments in Sirius XM Radio, Time Warner, Time Warner Cable and Live Nation, will be a tracking stock possibly with a new name. This entity will also contain the Atlanta National League Baseball Club.

The transaction is intended to be tax-free to stockholders, and it is expected to be completed by the end of the year or early next year.

"An asset-backed Liberty Interactive will provide better transparency on Liberty's operating businesses, enable more efficient capital raising and permit us to better pursue our strategic objectives," Maffei said.
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