Liberty Media Plans Spinoff - TheStreet

Liberty Media

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intends to spin off its interests in Ascent Media Group and Discovery Communications, as the media company's chairman John Malone continues his maneuvering.

DHC will be comprised of Liberty Media's 100% ownership interest in Ascent Media as well as its 50% ownership interest in Discovery, best known for the Discovery Channel. Liberty Media's businesses include other TV channels such as QVC, Encore and Starz.

The transaction -- intended to be tax-free to shareholders and Liberty Media -- will create a new publicly traded company called Discovery Holding Company.

Holders of Liberty Media series A and B common stock will receive 0.05 of a share of the new DHC common stock for each share of Liberty Media common stock held by them as of the record date -- which has not been set.

Colorado-based Liberty hopes to complete the deal in the second quarter of this year.

Malone has been trying to rebuild his media empire; having sold his significant cable TV operations to


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years ago, a move he is said to regret. Lately, Malone has been jousting with Rupert Murdoch, having accumulated a sizable stake in

News Corp

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Shares closed 2 cents lower at $10.23 Monday.