ENGLEWOOD, Colo.—Liberty Media Corp. said Wednesday its shareholders have authorized a third tracking stock for its entertainment assets that would include a stake in DirecTV it is acquiring from Rupert Murdoch’s News Corp.
The stock will be created when the deal between cable entrepreneur John Malone’s Liberty Media and News Corp. is complete, expected later this year.
Liberty Media has agreed to exchange its stake in News Corp. and $550 million in cash for a 38.5 percent interest in DirecTV, the No. 1 satellite television provider in the United States.
The new tracking stock called Liberty Entertainment Group, which was approved Tuesday by stockholders, would include the company’s interests in Starz, WildBlue Communications Inc., a rural satellite broadband company and Fun Technologies Inc.
Analysts have said the change will give Liberty a chance to separate the DirecTV investment from its other holdings in hopes of gaining more stock value.
In May 2006, Liberty Media divided its assets into two tracking stocks to make it easier for shareholders to follow its disparate parts. Liberty Interactive Group, the first tracking stock, includes home-shopping channel QVC and other interactive businesses. Liberty Capital Group includes Starz and a range of entertainment businesses.
In early Wednesday trading, Liberty Interactive shares dropped 40 cents to $20 and Liberty Capital shares fell 51 cents to $123.84.
Liberty Media, based in suburban Englewood, owns a diverse range of e-commerce and entertainment businesses.
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