A Liberty Media Corp. executive said Tuesday the company plans to hang on to its 18 percent stake in News Corp. on the belief the stock is undervalued.
“There is no timeline and there is no line in the sand as far as how we hold that position,” Liberty treasurer Dave Flowers told analysts. “We like the stock. We think it is undervalued and we are prepared to sit on it.”
Flowers also said Liberty has no immediate plans to spin off its interactive businesses, including home shopping network QVC, in the wake of creating a tracking stock.
“If we find it is not working the way we thought it would, we will make adjustments,” he said.
Flowers spoke with analysts during the 33rd annual UBS Global Media Conference in New York, which was webcast on the Internet.
Douglas County-based Liberty, a media holding company founded by cable entrepreneur John Malone, announced plans last month to create a tracking stock for about 85 percent of its assets, including QVC and related businesses.
Its remaining assets will be grouped under the name Liberty Capital.
Flowers said he expects the tracking stock to be created sometime at the end of the first quarter after it clears a Securities and Exchange Commission review and a shareholder vote.
The company also plans to continue looking at acquisitions in electronic and interactive commerce, Flowers said.
On Tuesday, Liberty Media announced plans to acquire Provide Commerce Inc., an Internet retailer, for $477 million in cash.
The company would be put into Liberty’s interactive businesses if the deal is approved by regulators and stockholders.
Liberty’s stock closed up 3 cents, or 0.39 percent, to $7.80 a share on the New York Stock Exchange.
Liberty has interests in a diverse range of companies including cable channels QVC, Starz Entertainment Group, IAC/InterActiveCorp and News Corp.
