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What's Next for Liberty Entertainment?
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What's next for Liberty Media and its Liberty Entertainment entity?
Late last week, Liberty Media said its board authorized a plan to distribute to holders of the Liberty Entertainment tracking stock shares of a subsidiary that will hold a majority of the businesses, assets and liabilities currently attributed to the Entertainment unit, such as Liberty's controlling stake in DIRECTV. The remaining Entertainment tracking stock would hold Starz Entertainment.
Tom Eagan of Collins Stewart, in a note released Monday, said he believes the new tracking stock containing the DIRECTV stake could eventually be spun into an asset-based security. "This asset-based security could potentially be merged with DIRECTV," he said.
Eagan said the next logical step for the other tracker, comprised largely of Starz, would be to roll it up as a part of Liberty Interactive. The combination would enable "LINTA" to raise $1 billion in cash - off of $250 million from Starz' cash flow. That money could be used to pay down QVC debt, the analyst said.
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What's next for Liberty Media and its Liberty Entertainment entity?
Late last week, Liberty Media said its board authorized a plan to distribute to holders of the Liberty Entertainment tracking stock shares of a subsidiary that will hold a majority of the businesses, assets and liabilities currently attributed to the Entertainment unit, such as Liberty's controlling stake in DIRECTV. The remaining Entertainment tracking stock would hold Starz Entertainment.
Tom Eagan of Collins Stewart, in a note released Monday, said he believes the new tracking stock containing the DIRECTV stake could eventually be spun into an asset-based security. "This asset-based security could potentially be merged with DIRECTV," he said.
Eagan said the next logical step for the other tracker, comprised largely of Starz, would be to roll it up as a part of Liberty Interactive. The combination would enable "LINTA" to raise $1 billion in cash - off of $250 million from Starz' cash flow. That money could be used to pay down QVC debt, the analyst said.
