Liberty Media announced Friday evening that its board had approved a plan to spin off most of its Liberty Entertainment(LMDIA Quote) unit, which holds a majority stake in DIRECTV(DTV Quote).
Liberty Entertainment already has a tracking stock that trades on Nasdaq. But Liberty Media says that stock is trading at a discount to the assets that the unit actually holds.
"We believe a new asset-backed security will reduce the discount from fair value in our stock, thereby making it a more attractive currency, and will permit us to better pursue our strategic objectives," said Greg Maffei, president and CEO of Liberty Media.
In the planned transaction, Liberty Media will redeem a portion of the outstanding tracking stock in exchange for shares in the subsidiary, which will become a separate public company. Liberty Media said the transaction is intended to be tax-free to shareholders. ...
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