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Will HSN Be Ensnared in Liberty's Web?

Despite the performance, Liberty Capital shares were also selling off, recently down $1.62, or 1.3%, to $121.29. Roge says the trading action was more connected to a broader selloff in the stock market than to a disappointment in the company's third-quarter results.

"Starz Entertainment, their main operating company on the capital side, had a blowout quarter," says Roge. "Revenue was up dramatically and operating income was up dramatically. All around, it's an impressive performance and a great business."

Meanwhile, Roge is optimistic about Liberty's recently announced plan to split its capital business in half, with one side retaining the title of Liberty Media Capital and the other side becoming Liberty Media Entertainment.

The split will take place after Liberty's pending deal with Rupert Murdoch's News Corp. (NWS-A) closes. Malone last year agreed to swap his stake in News Corp. for News Corp.'s controlling stake in DirecTV (DTV - Get Report), the satellite TV giant.

Liberty's DirecTV holding will become the main component of the capital side of its business, along with its cable holdings, while Starz and other assets will comprise the entertainment side.

"I'd love to own both of them," says Roge. "Both have very good growth prospects, and the break-up will only add to their stock prices over time. We'll be a buyer of both companies going forward at the right price."

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