Douglas County-based Liberty Media Corp., controlled by Chairman John Malone, said it will spin off Liberty Capital and Liberty Starz, two of its three tracking stock groups.
The move provides better transparency of the company’s businesses, improves its ability to raise capital and may help with other objectives such as acquisitions using stock, Chief Executive Officer Greg Maffei said in a statement.
Liberty Media plans to redeem outstanding shares of the units in exchange for shares in a newly formed company, whose stock will be divided into two tracking stocks. The spinoff will be tax-free to stockholders, who will need to approve it, the company said.
Liberty Starz holds the company’s interest in television company Starz Entertainment, according to Liberty Media’s website. Liberty Capital holds assets including Starz Media LLC, a production and distribution company, and investments in Time Warner Inc., Time Warner Cable Inc. and Sprint Nextel Corp.
