Douglas County-based Liberty Media may be close to hammering out a deal for News Corp. assets, according to a report in The Financial Times.
Liberty Media – controlled by cable magnate John Malone – currently holds an 18 percent voting stake in Rupert Murdoch’s News Corp.
With the Federal Communications Commission on the verge of transferring control of 35 television stations owned personally by Malone to News Corp., the time may be right for a deal in which Liberty would gain some News Corp. assets in exchange for its stock tax-free, the Financial Times reported Sunday.
News Corp. officials declined to comment on the report. Calls to Liberty Media were not returned.
Liberty’s stake in News Corp. has been controversial, prompting concerns of a takeover by Malone. A so-called poison pill exists at News Corp. to ward off such a move. The defensive poison-pill strategy allows the Murdoch family or other shareholders outside of Malone to buy shares if a shareholder other than the Murdochs acquires more than 15 percent of the stock. Shareholders are set to vote on the poison-pill action later this year.
Following Liberty’s annual meeting in May, Malone praised News Corp.’s management but said he wants to maintain flexibility regarding what to do with the shares, adding that any move must have low tax implications for Liberty.
“They have the best vertical strategy. The company is well- run,” Malone said. “Either we get an asset or the shareholders get a stake. No one knows where this will end up. From time to time, windows open and close.”
